Dumping is one of the main challenges that both producers and exporters of goods with cross-border interests must face.

It is a problem to which none of the different actors involved in the freight transport industry are immune.

In the following lines, we will approach the issue by defining dumping and antidumping, explaining their objectives, and then seeing how antidumping measures are applied and how the maritime transport industry is protected from this type of unfair competition.

What is dumping in the shipping industry?

The European Commission defines dumping as “the sale of a product at a price lower than its normal value on the export market”. The normal value refers to the price at which the product is sold in the local market of the exporting country, or at a price determined by the European Commission if there is no local market.

In other words, it is the sale of a product at a price lower than the objectively considered normal value, either in the national market of the exporting country or in the international market.

Since some countries produce certain goods and products at lower prices than the competition and without the help of tariffs, these countries could collapse industries based on production in the local market of another country. And that is where the concept of dumping in the maritime transport industry comes into play.

What is the purpose of dumping?

The main objective of dumping is to capture a greater market share and gain a competitive advantage by offering products at lower prices than the competition.

Companies engage in dumping to enter new markets, increase their market share, eliminate competition, achieve short-term profits, or even eliminate local production in other countries.

Dumping can reduce production costs, increase sales, and improve a company’s position in the market. This can make their products more attractive to consumers and generate greater demand, allowing them to gain a larger market share.

However, it should be noted that dumping can have negative impacts on the industry and economy as a whole. This is because it creates unfair competition between producers and exporters from different countries, which can affect competitiveness and industry development in the long run.

Dumping is, therefore, a practice that, directly or indirectly, affects all maritime transport companies that depend on international trade.

What is antidumping?

Antidumping is a trade measure used to combat the effects of dumping on world trade.

It aims to protect local economies and companies from unfair competition that may arise from the practice of dumping.

The measures imposed level the playing field and ensure that local companies have an equal chance to compete. Governments may impose tariffs and restrictions on imported products that are sold below their normal price in the international market, to prevent foreign companies from selling their products at an artificially low price.

Antidumping measures level the playing field and ensure that local companies have a fair chance to compete. Governments impose tariffs and other restrictions on imported products that are sold below the normal price in the international market to prevent exporting companies from selling products at artificially low prices, which can have a negative impact on the local economy.

Antidumping measures are designed to prevent exporting companies from selling products at lower prices that with that causing job losses, reduced production, or elimination of competition.

The goal is to protect local companies and ensure a fair and balanced competition in the market, which will ultimately benefit the economy.

How does antidumping affect the maritime transport of goods?

Antidumping measures can affect maritime transport in various ways. First, antidumping tariffs and quotas can increase the cost of products and, therefore, the cost of transporting them.

In addition, maritime carriers may be affected by the decrease in cargo volumes if tariffs are applied to imports, as this can limit importers’ ability to acquire certain products.

But how exactly are antidumping measures applied, and who applies them? Let’s take a closer look.

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How are anti dumping measures applied?

In Europe, antidumping measures are applied after a thorough investigation by the European Commission and the World Trade Organization (WTO).

During the investigation, the trade practices of the investigated countries are analyzed to determine if they are engaging in unfair practices such as dumping.

If evidence is found that dumping is occurring, antidumping tariffs and quotas can be applied to counteract the negative impact of these practices.

How is the maritime transportation industry protected from dumping?

The maritime transportation industry can protect itself from dumping in various ways.

  • First, carriers can stay informed about ongoing antidumping investigations to be prepared for possible changes in transportation demand.
  • In addition, carriers can work with importers and exporters to develop solutions that minimize the impact of antidumping measures, such as finding new markets or reducing costs in other aspects of the supply chain.

A number of specialized companies that facilitate and improve international trade are helping greatly in these matters.

Ultimately, protecting the maritime transport industry from dumping and antidumping measures is a joint effort among all actors in the freight transport industry: carriers, importers, exporters, and governments through regulations and rules established by the WTO.