AP Møller-Maersk and local regulators are investigating allegations that the Danish conglomerate’s subsidiaries have been using their sizeable influence to force Indian shippers to use container facilities at Gujarat Pipavav Port (GPPL).

Shippers claim AP Møller-Maersk’s container shipping divisions, Safmarine Container Lines and Maersk Line, have agreed to only provide shipping services in Gujarat state via GPPL facilities operated and part-owned by APM Terminals, also part of the AP Møller-Maersk group.

The shippers claim the lines have signed up to a two year exclusivity deal, which will run until 31 March 2012.
SRL Narasimhan, Secretary of the Western India Shippers Association, reporters that the deal forced shippers to use the port even though it was more expensive than rival container facilities and left them at a competitive disadvantage.

“Any type of exclusivity is anti-competitive in spirit and nature,” he said. “It will compel exporters and importers to ship their cargo through Pipavav if they are carried on Maersk or Safmarine vessels, rather than through the cheapest port of their choice.”

Shippers are also claiming Maersk Line raised its terminal handling charge to shippers using Gujarat Pipavav Port on 1 September. Neither Safmarine nor Maersk would comment on the exclusivity deal or THCs. “We take all claims of anti -competitive behavior very seriously and will look into whether there is any substance to these accusations,” the two shipping lines said.

CN Patel, Executive Engineer at Gujarat Maritime Board, which monitors private ports such as Pipavav, confirmed traders had filed a number of complaints about the port, and said such a shipping deal would amount to unfair practice.

“It would be anti-competitive; they can’t do that,” he added.
Container cargo accounts for around half of the revenue of GPPL with almost a third of revenue understood to be derived from vessel calls by Maersk and Safmarine.