Brazilian Association of Port Terminals accuses Maersk and MSC of exploiting their dominance
The Brazilian Association of Port Terminals (ABTP) has officially asked the country’s Administrative Council for Economic Defense (CADE) to investigate possible exploitation by Maersk and MSC of their dominant position in Brazil’s maritime container industry.
The association accuses the two carriers, which it says together transport 79% of containers along the Brazilian coast, of directing cargo to the seven port terminals they own. According to ABTP, those seven terminals handle almost half of Brazil’s containerised cargo.
ABTP president Jesualdo Conceição Silva noted in an interview with Farol Econômico that the situation is likely to worsen, as Maersk won an auction in July to buy Atlântico Sul Shipyard at the Port of Suape.
Silva sees the possibility that areas in Brazil where Maersk and MSC do not have terminals will be disadvantaged to the point that their ports are no longer economically viable.
“More than 95% of our foreign trade is done via ports,” he said. “We are talking about national sovereignty here.”
We value the authority of Brazilian government but, the ownership of these two Giant Container Liner both Maersk and MSC, retains and invoke legal rights and patent ownership, because the two shipping owner’s is paying tax, and before they operate it has been issued a license before Brazilian Authority, and besides these Port Terminals has been operating in a decades, and I don’t think the issues has been the question,
For the records Container Liner in South American countries plays a vital role in order to sustain their ECONOMY.
Out of interest, if controlling 79% of box imports makes MSC and Masersk a cartel (I’m not necessarily disputing that bit) how much import box trade does the port association control? and assuming its about 79% or higher, are they not a cartel themselves?
When in Rome you do what the Romans want.It might be a technical/statutory loophole that needs to be adjusted by Brazilian GVT. Ports are a symbol of freedom due to the nature and purpose to a sovrign state.Without their influence they are prone to sabotage if the worse comes to the worse like whats jappening to Russia. Its better they address the grieviance now or one day they will be caught sleeping considering their affiliation with BRICS now. If MSC are enjoying their trade with no strings attached adjusting to the new demands should not be an issue.