The shipping Act of 1984 represents a new attempt to balance the benefits of a conference (cartel) system against its costs. This legislation may have increased conference market power by streamlining the regulatory process and expanding antitrust immunity. Alternatively, the legislation may have decreased conference market power by providing for the Mandatory Right to Independent Action and Service Contracts. We develop and estimate an econometric model and find that any increased market power is offset by competitive provisions when those competitive provision apply. However, when those provisions do not apply, the Act may increase market power.
