The Far Eastern Freight Conference was a co-operative agreement between a group of steamship owners and shipbrokers involved in scheduled cargo liner services principally between China and Japan, and European ports. It was established in 1879 as the China and Japan Conference through the efforts of John Swire. They co-operated in order to overcome excess capacity of steamers in that trade. Described by some as a cartel, the conference rewarded shippers that gave all their business to ships owned by conference members through a system of deferred rebates to the freight rates charged. These discounts were deferred for, typically, six months and were not payable if the shipper used a ship outside the conference in that time. Capacity was controlled by limiting each member to an agreed number of sailings during the year. The conference survived a legal challenge in 1885, which went to the High Court in 1887, then through the Court of Appeal and ultimately to the House of Lords: the conference won at every level. There were later challenges and enquiries, which the conference survived. Ultimately, changes to the European Union exemption of shipping conferences from their competition regulations brought the conference to an end in October 2008.[1][2]: 126–127 [3]
^"Far Eastern Freight Conference closes with a whimper". Seatrade Maritime. 17 October 2008. Retrieved 15 December 2021.
^King, Peter (2017). The Aberdeen Line : George Thompson Jnr's incomparable shipping enterprise. Stroud: The History Press. ISBN 978-0-7509-7851-4.
^Sjostrom, William (1989). "Collusion in Ocean Shipping: A Test of Monopoly and Empty Core Models". Journal of Political Economy. 97 (5): 1160–1179. doi:10.1086/261647. ISSN 0022-3808. JSTOR 1831890. S2CID 154880513. Retrieved 15 December 2021.
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