ABSTRACT
The liner conference is an organization whereby a number of shipowners offer their services on a given sea route on conditions agreed by the members. Conferences are semi-monopolistic associations of shipping lines formed for the purpose of restricting competition between their members and protecting them from outside competition. Conference agreements may also regulate sailings and ports of call, and in some cases arrangments are made for the pooling of net earnings. Conferences achieve their object by controlling prices and by limiting entry to the trade. Their chief policy is to establish a common tariff of freight rates and passenger fares for the trade involved, members being left free to compete for traffic by the quality and efficiency of their service. The organization of a conference varies from one trade to another. It may consist of informal and regular meetings of shipowners at which rates and other matters of policy are discussed, or it may involve a formal organization with a permanent secretariat and prescribed rules for membership, together with stipulated penalties for violations of agreement. Members are often required to deposit a cash bond to cover fines in respect of non-compliance with their obligations.
