870
c. 37
Scu
Merchant Shipping (Liner Conferences) Act 1982
CHAPTER II
RELATIONS AMONG MEMBER LINES
Article 1
MEMBERSHIP
1. Any national shipping line shall have the right to be a full member of a conference which serves the foreign trade of its country, subject to the criteria set out in article 1, paragraph 2. Shipping lines which are not national lines in any trade of a con- ference shall have the right to become full members of that con- ference, subject to the criteria set out in article 1, paragraphs 2 and 3, and to the provisions regarding the share of trade as set out in article 2 as regards third-country shipping lines.
2. A shipping line applying for membership of a conference shall furnish evidence of its ability and intention, which may include the use of chartered tonnage, provided the criteria of this paragraph are met, to operate a regular, adequate and efficient service on a long-term basis as defined in the conference agreement within the framework of the conference, shall undertake to abide by all the terms and conditions of the conference agreement, and shall deposit a financial guarantee to cover any outstanding financial obligation in the event of subsequent withdrawal, suspension or expulsion from membership, if so required under the conference agreement.
3. In considering an application for membership by a shipping line which is not a national line in any trade of the conference con- cerned, in addition to the provisions of article 1, paragraph 2, the following criteria, inter alia, should be taken into account:
(a) The existing volume of the trade on the route or routes served by the conference and prospects for its growth; (b) The adequacy of shipping space for the existing and prospec- tive volume of trade on the route or routes served by the conference :
(c) The probable effect of admission of the shipping line to the conference on the efficiency and quality of the con- ference service;
(d) The current participation of the shipping line in trade on the same route or routes outside the framework of a con- ference; and
(e) The current participation of the shipping line on the same route or routes within the framework of another conference. The above criteria shall not be applied so as to subvert the imple- mentation of the provisions relating to participation in trade set out in article 2.
4. An application for admission or readmission to membership shall be promptly decided upon and the decision communicated by a conference to an applicant promptly, and in no case later than six months from the date of application. When a shipping line is refused admission or readmission the conference shall, at the same time, give in writing the grounds for such refusal.
Merchant Shipping (Liner Conferences) Act 1982
c. 37
871
5. When considering applications for admission, a conference shall take into account the views put forward by shippers and shippers' organizations of the countries whose trade is carried by the conference, as well as the views of appropriate authorities if they so request.
6. In addition to the criteria for admission set out in article I, paragraph 2, a shipping line applying for re-admission shall also give evidenco of having fulfilled its obligations in accordance with article 4, paragraphs 1 and 4. The conference may give special scrutiny to the circumstances under which the line left the con- ference.
Article 2
PARTICIPATION IN TRADE
1. Any shipping line admitted to membership of a conference shall have sailing and loading rights in the trades covered by that conference.
2. When a conference operates a pool, all shipping lines members of the conference serving the trade covered by the pool shall have the right to participate in the pool for that trade.
3. For the purpose of determining the share of trade which member lines shall have the right to acquire, the national shipping lines of each country, irrespective of the number of lines, shall be regarded as a single group of shipping lines for that country.
4. When determining a share of trade within a pool of individual member lines and/or groups of national shipping lines in accordance with article 2, paragraph 2, the following principles regarding their right to participation in the trade carried by the conference shall be observed, unless otherwise mutually agreed:
(a) The group of national shipping lines of each of two countries the foreign trade between which is carried by the con- ference shall have equal rights to participate in the freight and volume of traffic generated by their mutual foreign trade and carried by the conference;
(b) Third-country shipping lines, if any, shall have the right to acquire a significant part, such as 20 per cent, in the freight and volume of traffic generated by that trade.
5. If, for any one of the countries whose trade is carried by a conference, there are no national shipping lines participating in the carriage of that trade, the share of the trade to which national shipping lines of that country would be entitled under article 2, paragraph 4 shall be distributed among the individual member lines participating in the trade in proportion to their respective share.
6. If the national shipping lines of one country decide not to carry their full share of the trade, that portion of their share of the trade which they do not carry shall be distributed among the
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