Shipping is an unlikely candidate for inter‐govern‐mentally fixed standards of operating practice. Yet the Western shipowning countries and the Group of 77 have agreed the market sharing Liner Code under which liner shipments will be split in the ratio 40:40:20 between importing, exporting and cross‐trading states. This was a tactical compromise by the West to head off a more fundamental challenge to existing arrangements in the bulk trade. The EEC states have agreed a special compromise for themselves. Among the countries to suffer from the effects of the Liner Code will be those ldcs that already have large fleets flying their flag. Other ldcs that have only small fleets will have difficulty in taking advantage of the new regime. They are likely to enter joint ventures with established shipowners under which their flag will be flown by expatriate‐owned ships. Hence, the Liner Code will not produce a major shift in shipownership. It will simply add another layer to the groups wanting to share profits. This will raise transportation costs generally.