Shipping Conferences Exemption Act, 1987 (R.S.C., 1985, c. 17 (3rd Supp.))

Short Title

Marginal note:Short title

1 This Act may be cited as the Shipping Conferences Exemption Act, 1987.

Interpretation

Marginal note:Definitions

• 2 (1) In this Act,

  Agency

  Agency means the Canadian Transportation Agency; (Office)

  Commission

  Commission[Repealed, 1992, c. 1, s. 123]

  Commissioner

  Commissioner means the Commissioner of Competition appointed under the Competition Act; (commissaire)

  conference

  conference means an association of ocean carriers that has the purpose or effect of regulating rates and conditions for the transportation by those ocean carriers of goods by water; (conférence)

  conference agreement

  conference agreement means any contract, agreement or arrangement among the members of a conference and includes any amendment thereto; (accord intra-conférence)

  contract rate

  contract rate means the rate to be charged for the transportation of goods shipped by a shipper pursuant to a loyalty contract; (taux de fret contractuel)

  designated shipper group

  designated shipper group means any organization or association of shippers designated by the Minister of Transport pursuant to section 21; (groupe d’expéditeurs désigné)

  Director

  Director[Repealed, 1999, c. 2, s. 50]

  dual rate system

  dual rate system means an arrangement of the rates to be charged for the transportation of goods into contract rates and non-contract rates and in which the contract rate for the transportation of specific goods described therein is lower than the non-contract rate for those goods; (double régime de taux de fret)

  independent action

  independent action, by a member of a conference, means the provision by the member of a service in a manner or at a rate that is different from that provided for in any tariff established by the members of that conference or the provision by the member of a service for which no provision is made in any such tariff; (mesure distincte)

  interconference agreement

  interconference agreement means any contract, agreement or arrangement between the members of a conference and the members of another conference and includes any amendment thereto; (accord mixte)

  loyalty contract

  loyalty contract means a contract between a shipper of goods and the members of a conference whereby the shipper agrees, in return for certain advantages, to offer to those members for transportation by them all goods, all goods of certain classes or a portion only of all goods or of all goods of certain classes shipped by that shipper; (contrat d’exclusivité)

  non-contract rate

  non-contract rate means a rate, other than a rate established in a service contract, to be charged for the transportation of goods shipped by a shipper who has not entered into a loyalty contract; (taux de fret non contractuel)

  ocean carrier

  ocean carrier means an owner, lessee or charterer of a vessel who is engaged in the business of the transportation of goods by water; (transporteur maritime)

  service contract

  service contract means a contract between a shipper of goods and one or more members of a conference whereby the shipper agrees to provide to those members for transportation by them over a fixed period of time a specified minimum quantity of goods and, in return, those members agree to carry the goods at a specified rate or in accordance with a specified rate schedule and agree to provide a specified level of service and includes any amendment thereto but does not include a loyalty contract; (contrat d’exclusivité limitée)

  tariff

  tariff means a tariff of rates established by the members of a conference for the transportation of goods by vessel alone or by vessel and by any other means of transportation, and includes any rules or regulations that determine the calculation of such rates or prescribe terms or conditions for the transportation of goods by vessel; (tarif)

  transportation of goods

  transportation of goods means the transportation of goods from any place in Canada to any place outside Canada or from any place outside Canada to any place in Canada. (transport de marchandises)

• Marginal note:Filing of documents

  (2) For the purposes of this Act, a document may be filed with or given to the Agency in paper form or electronic form, and is deemed not to have been filed with or given to the Agency until it has actually been received by the Agency.

Administration

Marginal note:Agency is responsible

3 The Agency is responsible for the administration of this Act.

Non-application of Competition Act

Marginal note:Competition Act not to apply to certain contracts

• 4 (1) Subject to subsections (2) to (4) and section 5, the Competition Act does not apply in respect of any conference agreement or interconference agreement to the extent that

  • (a) the conference agreement or interconference agreement requires a member of a conference to use a tariff;

  • (b) the conference agreement or interconference agreement requires a member of a conference to carry out a loyalty contract if that loyalty contract

    • (i) provides that it may be terminated by either party at any time after ninety days from the day notice in writing of intention to terminate is given to the other party,

    • (ii) provides for the application to goods shipped by the shipper of tariffs that incorporate a dual rate system in which no contract rate for any goods is less than eighty-five per cent of the non-contract rate for those goods,

    • (iii) makes no provision for the payment by any member of a conference of a rebate of any rate charged for the transportation of any goods shipped by the shipper, and

    • (iv) contains no term or condition in a standard form approved by the members of a conference requiring a shipper of goods to offer to those members for transportation by them all goods shipped by that shipper;

  • (c) the conference agreement establishes terms and conditions respecting the use of service contracts by members of a conference;

  • (d) the conference agreement or interconference agreement provides for the allocation among members of a conference of the ports in Canada or elsewhere to which or from which they may transport goods;

  • (e) the conference agreement or interconference agreement regulates the time of sailing of vessels of members of a conference and the kinds of service members of a conference may provide for the transportation of goods;

  • (f) the conference agreement or interconference agreement provides for the sharing by members of a conference of the transportation of goods offered for shipment by shippers or of earnings and losses of those members arising out of the transportation of goods; or

  • (g) the conference agreement or interconference agreement regulates the admission of ocean carriers to membership in a conference and the expulsion of members from a conference.

• Marginal note:Exception re filing

  (2) Subsection (1) does not apply in respect of a conference agreement or interconference agreement until a copy or description of the agreement is filed with the Agency in accordance with subsection 6(1).

• Marginal note:Exception re independent action

  (3) Subsection (1) does not apply in respect of a conference agreement unless the conference agreement

  • (a) provides that any member of the conference may, after giving to the other members of the conference five days written notice, or such lesser number of days written notice as may be specified in the conference agreement, of the member’s intention to do so, take independent action;

  • (b) provides that, when a member of the conference gives notice as described in paragraph (a), any other member of the conference may, after giving to the other members of the conference notice in writing of the member’s intention to do so, take the same independent action as soon as the first independent action becomes effective; and

  • (c) provides that, when a member of the conference gives notice as described in paragraph (a), the members of the conference shall publish or cause to be published the new rate or service item in a tariff not later than five days after the day on which the notice is received by the members of the conference.

• Marginal note:Exception re service contracts

  (3.1) The terms and conditions established by a conference agreement under paragraph (1)(c) shall not have the effect of preventing a member of the conference from negotiating or entering into a service contract on terms and conditions that the member considers appropriate and without having to give notice to the other members or having to divulge the terms and conditions of the contract.

• Marginal note:Exception re predatory practices

  (4) Subsection (1) does not have the effect of exempting from the application of the Competition Act any member of a conference who engages in, or who conspires, agrees or arranges with another person to engage in, a practice of selling products at prices unreasonably low that has the effect or tendency of substantially lessening competition or eliminating a competitor or is designed to have that effect and that is a practice of anti-competitive acts referred to in paragraph 79(1)(b) of that Act.

Marginal note:Limitation

• 5 (1) Subsection 4(1) does not apply in respect of a conference agreement or interconference agreement if any party to the agreement conspires, combines, agrees or arranges with any other party to the agreement

  • (a) to use a vessel for the purpose of preventing or lessening, unduly, competition in the transportation of goods by an ocean carrier that is not a party to that agreement;

  • (b) to refuse to transport goods for a shipper because that shipper has used for the transportation of goods a vessel of an ocean carrier that is not a party to that agreement; or

  • (c) to prevent or limit the use by an ocean carrier in Canada or elsewhere of port or other facilities or services relating to the transportation of goods because that ocean carrier is not a party to that agreement.

• Marginal note:Further limitation

  (2) Subsection 4(1) does not apply in respect of a conference agreement if the parties to the agreement enter jointly into any contract, agreement or arrangement with any carrier in Canada for the purpose of establishing the amount to be paid by any party to the agreement to any such carrier for the inland transportation of goods for which that party has charged a through rate for the transportation of those goods.

Filing of Documents

Marginal note:Documents to be filed

• 6 (1) Every member of a conference shall, within the time prescribed in section 7, file or cause to be filed with the Agency

  • (a) a copy of every conference agreement and interconference agreement to which the member is a party or, in the case of an oral agreement, a description of the agreement in such form as the Agency may require;

  • (b) a copy of every service contract to which the member is a party, except a service contract referred to in subsection 4(3.1);

  • (c) notice of any change in the membership of the conference; and

  • (d) a copy of each standard form of loyalty contract approved by the members of the conference, and of every amendment to such a standard form of loyalty contract.

  • (e) and (f) [Repealed, 2001, c. 26, s. 327]

• (2) [Repealed, 2001, c. 26, s. 327]

Marginal note:Time for filing of documents

7 Every document required to be filed pursuant to

• (a) paragraph 6(1)(a) shall be filed with the Agency not later than the day on which the conference agreement or interconference agreement becomes effective;

• (b) paragraph 6(1)(b) shall be filed with the Agency not later than thirty days after the day on which the service contract becomes effective;

• (c) paragraph 6(1)(c) shall be filed with the Agency not later than thirty days after a change in the membership of the conference; and

• (d) paragraph 6(1)(d) shall be filed with the Agency not later than the day on which the standard form of loyalty contract becomes effective or, in the case of an amendment to that standard form, not later than thirty days after the day on which the amendment becomes effective.

• (e) [Repealed, 2001, c. 26, s. 328]