Doyle Gives Thumbs Up to Ocean Three
Commissioner William P. Doyle’s in a statement today said, "I am voting to take no further action on the Hanjin/UASC/CMA CGM/CSL Vessel Sharing and Slot Charter Agreement. This agreement is scheduled to become effective on January 2, 2015."
The agreement commonly referred to as the Ocean Three Alliance was filed in October 2014 and went into immediate effect because it met the low market share threshold exemption pursuant to FMC regulations. The Ocean Three Alliance is comprised of United Arab Shipping Company (UASC), CMA CGM and China Shipping Container Lines (CSCL).
This Hanjin/UASC/CMA CGM/CSL Vessel Sharing and Slot Charter Agreement is basically the Ocean Three parties plus Hanjin Shipping Company. However, the actual service being deployed under this agreement is based on a 2009 agreement between UASC and Hanjin with some limited port and carrier adjustments.
The U.S. port rotation of New York, Norfolk and Savannah will now include Miami. Other new international ports added include Mundra and Livorno. Further, Tangier will replace Algeciras.
The vessel sharing and slot charter Agreement contains no limitations on the parties' ability to introduce additional capacity or provide transportation on other vessels in the trade. At this time it appears that the Agreement is not likely, through a reduction in competition, to result in an unreasonable increase in transportation service or an unreasonable increase in transportation costs.
