EU regulators probe feeder-ship owners

(BRUSSELS) - EU competition regulators announced Friday that they have launched a probe into an arrangement between shipowners which they suspect is driving up charter rates for certain kinds of vessels.

"The European Commission has opened a formal antitrust investigation concerning the 'Baltic Max Feeder' scheme over a potential breach of EU rules on restrictive business practices," the EU's top regulator said.

Brussels is concerned that the owners, to combat low charter prices, are agreeing to remove so-called port feeder ships from service and collectively cover the costs of doing so.

The reduction in the number of ships -- which usually operate in ports ferrying cargo between deep sea vessels and container terminals on land -- could then cause the cost of chartering the vessels to rise.

"The commission is in particular concerned that the scheme... may be aimed at reducing capacity and therefore at pushing up charter rates for such vessels," Brussels said in a statement.

The "Baltic Max Feeder" scheme was devised by German tax advisor Anchor Steuerberatungsgesellschaft as a response to the current overcapacity in feeder container vessels, which has brought down charter rates.