English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

FMC approves P3 despite shipper objections

WASHINGTON, D.C.: The U.S. Federal Maritime Commission (FMC) has approved the proposed P3 capacity sharing agreement between A. P. Moller-Maersk, CMA CGM and MSC Mediterranean Shipping Company.

Following a review, the FMC said the P3 can "share vessels and engage in related cooperative operating activities in the trades between the U.S. and Asia, North Europe, and the Mediterranean effective March 24, 2014."

The FMC has authorized the initial use of 130 vessels with capacities ranging from 4,000 to 12,250 TEUs with the option to operate up to 180 ships each with a capacity of up to 19,200 TEUs. The P3 members are also permitted to add and withdraw capacity based on the introduction of new vessels - but only Maersk Line's U.S.-flag ships operated within the P3 network will be allowed to carry cargo normally reserved for such vessels.

In its ruling, the commission determined the agreement "is not likely at this time, bcma-cgm-jules-verne-marseille-I3y a reduction in competition, to produce an unreasonable increase in transportation cost or an unreasonable reduction in transportation service under section 6(g) of the Shipping Act." Noting that the companies might "unreasonably reduce services or unreasonably raise rates" the FMC will require the P3 to provide reports as part of "close" monitoring process.

FMC chairman Mario Cordero commented: "The commission's action on the P3 agreement takes into account the comprehensive, competitive analysis conducted by the FMC staff and comments received from shippers and other stakeholders. While the agreement is expected to produce operational efficiencies for the benefit of the U.S. consumer, the new reporting requirements specifically tailored to this agreement's unique authority will ensure we have timely and relevant information to act quickly should it be necessary."

His view was not shared by Richard Lidinsky, one of the five FMC commissioners, who in January "stopped the clock" by calling for more information on a submission by the G6 Alliance - made up of American President Lines, Hapag Lloyd, Hyundai Merchant Marine Company, Mitsui O.S.K. Lines, NYK and OOCL. The G6 wants to operate 180-220 ships with a maximum capacity of 14,000 TEUs between Europe, the Mediterranean and the U.S. Gulf and East Coasts.

The P3 decision follows submissions by the Global Shippers' Forum (GSF) to the FMC and European Commission worried the alliance might restrict competition or collude on rates. Chris Welsh, secretary-general of the GSF commented: "The GSF has made a formal legal submission to the European Commission on behalf of shippers from all over the world. The major fear is the market impact that the P3 agreement would have. If the P3 were to proceed in its current form, the structure of container shipping markets serving EU and global trades would be fundamentally changed, including the possibility of eliminating effective competition."

Speaking to GSF members prior to the ruling, FMC commissioner William Doyle acknowledged their concerns and said they had been helpful for the FMC in evaluating the P3 filing.

News

Written on 21/11/2017, 21:21
singapore-signs-smart-logistics-mou-with-south-koreaSINGAPORE: November 21, 2017. Government enterprise agency IE Singapore has signed an MoU with South Korea's Gyeonggi province to collaborate in...
Written on 17/11/2017, 21:43
decathlon-takes-to-the-railsDOURGES, France: November 16, 2017. Maersk Line and Damco, subsidiaries of A.P. Møller – Mærsk, have completed their first block train from Wuhan, China...
Written on 16/11/2017, 18:06
mia-director-resignsMIAMI: November 14, 2017. Miami-Dade County Aviation Department director and CEO Emilio González, the driving force behind much of Miami International...
Written on 14/11/2017, 20:26
truck-manufacturers-face-class-action-lawsuitLONDON: November 14, 2017. UK law firm Collyer Bristow has established a £100 million class action for truck operators that may have been overcharged by...
Written on 14/11/2017, 17:03
finland-opens-new-rail-route-to-chinaKOUVOLA, Finland. November 12, 2017. A new weekly rail service between Northern Europe and China launched on November 10 as the first train with 41...
Written on 10/11/2017, 20:10
imd-acknowledges-family-business-excellenceGRAN CANARIA, Canary Islands: November 10, 2017. Swiss business school IMD has recognized global brand management company Pentland Group with its 22nd...
Written on 08/11/2017, 22:02
how-much-carbon-risk-in-us-355-billionLONDON: November 08, 2017. The Carbon War Room (CWR), founded in 2009 by Richard Branson and others to advance the low carbon economy, is calling for the...
Written on 07/11/2017, 19:59
costa-rica-signs-biofuel-deal-with-klmAMSTERDAM: November 07, 2017. As delegates to the 2017 UN Climate Change Conference (COP 23) meet in Bonn this week, KLM and the government of Costa Rica...
Written on 06/11/2017, 02:27
qatar-airways-takes-cathay-pacific-stakeHONG KONG/DOHA: November 06, 2017. Qatar Airways is buying 9.6 percent of Cathay Pacific Airways (CX) for HK$5.16 billion (US$661 million). The shares...
Written on 03/11/2017, 15:09
slower-airfreight-growth-in-2018-says-iataGENEVA: November 01, 2017. IATA reports a 9.2 percent increase in flown freight in September 2017 compared to the same month last year as capacity rose...
Written on 01/11/2017, 19:42
heathrow-misery-must-end-say-forwardersLONDON: November 01, 2017. The head of the UK's freight forwarder association says his members "want action, not words" to resolve congestion at...
Written on 30/10/2017, 21:03
china-s-one-belt-one-road-gets-new-rail-linkBAKU, Azerbaijan: October 30, 2017. The Baku-Tbilisi-Kars (BTK) railway connecting Azerbaijan, Georgia and Turkey has opened following the completion of a...
Written on 29/10/2017, 19:47
dp-world-to-support-us-500-billion-saudi-projectRIYADH, Saudia Arabia: October 26, 2017. Speaking at the Future Investment Initiative this week, DP World chairman and CEO Sultan Ahmed Bin Sulayem...
Written on 27/10/2017, 20:40
deutsche-post-dhl-delivers-unity-symbol-ahead-of-climate-conferenceBONN: October 26, 2017. As the official logistics partner for the UN Climate Change Conference (COP23) in Bonn next month, Deutsche Post DHL has shipped a...
Written on 26/10/2017, 19:41
change-of-chairs-at-tiacaMIAMI: October 26, 2017. The Board of the International Air Cargo Association has appointed Jan de Rijk Logistics CEO Sebastiaan Scholte its new chairman...
Written on 26/10/2017, 16:06
amazon-to-launch-keyless-home-deliverySEATTLE: October 25, 2017. Amazon will launch its 'Amazon Key' home delivery service for Prime members in 37 U.S. cities on November 08 at a one-time cost...
Written on 25/10/2017, 20:52
delta-introduces-a350-capacity-as-pharma-growth-continuesATLANTA: October 25, 2017. Delta Air Lines is to launch its A350-900 aircraft on flights from Detroit to Tokyo-Narita on October 30 followed by services...
Written on 20/10/2017, 20:31
cma-cgm-members-add-intra-asia-capacitySINGAPORE: October 20, 2017. CMA CGM Group subsidiaries APL and Cheng Lie Navigation (CNC) have launched a new Korea China Straits (KCS) box service...
Written on 19/10/2017, 21:13
britain-requires-new-aviation-strategy-with-or-without-brexitLONDON: October 18, 2017. The Manchester Airports Group (MAG), owner of Manchester, London Stansted and the airfreight-focused East Midlands Airport, has...
Written on 18/10/2017, 20:06
airlines-increase-support-for-endangered-speciesDOHA: October 18, 2017. Qatar Airways has joined Airlines for America, Delta, Emirates, IATA, Kenya Airways and United in the USAID Reducing Opportunities...

- powered by Quickchilli.com -