The Lithuanian Competition Council has formally cautioned that recent legislative proposals from the Ministry of Transport and Communications could negatively impact the maritime sector’s competitive landscape. In its evaluation of the draft amendments to the Law on Safe Shipping, the Council identified several measures that may inadvertently create barriers to entry and hinder the operations of existing businesses.
One of the primary concerns involves a new financial requirement for companies engaged in cargo loading. The proposal mandates that any business currently loading ships, or those seeking the right to do so, must carry general civil liability insurance of at least 200,000 euros. The Competition Council noted that the current law lacks a minimum insurance limit, and the introduction of such a significant threshold could complicate the continuity of smaller firms. This mandate may effectively limit the ability of minor players to stay in the market while discouraging new competitors from entering.
Additionally, the Council scrutinized proposed changes to the certification of maritime pilots. Under the new draft, a pilot’s certificate would be revoked if they have not guided a ship into port for more than six months. To regain the certificate, the pilot would be required to pass a new qualification assessment exam. The Council emphasized that any restriction on professional activity must be proven necessary and proportionate. However, the institution found that the Ministry provided no factual data to prove that a six-month absence objectively diminishes a pilot’s skills to a level that requires re-examination.
The Competition Council has recommended that the drafters of these acts perform a comprehensive impact assessment regarding competition. The Council stressed that once regulatory objectives—such as safety or liability—are established, authorities must prioritize the least restrictive means of achieving them. By seeking alternatives that do not impose heavy financial or professional burdens, the regulator aims to protect the dynamic nature of the shipping industry while maintaining safety standards.