FMC Seeks Public Comment on Container Shipping Alliance Agreement
The US Federal Maritime Commission (FMC) has opened a 15-day comment period for members of the public to comment in response to a newly filed vessel sharing agreement between Ocean Network Express (ONE), Hyundai Merchant Marine (HMM) and Yang Ming Marine Transportation (Yang Ming).
ONE, HMM and Yang Ming are parties to THE Alliance Agreement (No. 012439) that is currently in effect.
The five-year agreement, titled the Premier Alliance Agreement, authorizes the three ocean common carriers to share vessels; charter or exchange vessel space; discuss and agree on the size, number, and operational characteristics of vessels operated under the agreement; and engage in other related activities.
The cooperation is comprised of mainline services across major East-West Tradelines: Asia - North America West Coast, Asia - North America East Coast, Asia - Mediterranean, Asia - North Europe, and Asia - Middle East.
If the Commission takes no action, the Premier Alliance Agreement will become effective on December 12, 2024.
The Commission is reviewing the agreement to assess whether it is likely, by reducing competition, to cause an unreasonable reduction in transportation service or an unreasonable increase in transportation cost or to substantially lessen competition in purchasing certain services. The Commission is also reviewing the agreement to ensure that it complies with restrictions on ocean common carriers imposed by 46 U.S.C. § 41105, other Shipping Act provisions and the Commission’s regulations.
The Premier Alliance Agreement (No. 201435) is available for public inspection in the Commission’s online Agreement Library. Instructions for submitting comments are included in the Notice of Agreement Filed and Request for Public Comments published in the Federal Register. Comments will be most helpful to the Commission if received on or before November 20, 2024.
