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The US Federal Maritime Commission has deferred the global operational alliance of three container shipping companies set to take effect on December 12
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The Commission said more information is needed as it seeks to determine the arrangement’s impact on competition
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The HMM Co., Ocean Network Express, and Yang Ming Joint Service Agreement would replace an existing pact, but would exclude a fourth shipping company, Hapag-Lloyd
The US Federal Maritime Commission (FMC) has deferred the global operational alliance of three container shipping companies set to take effect on December 12, 2024.
The Commission in a statement said more information is needed to determine the arrangement’s impact on competition.
The HMM Co. Ltd., Ocean Network Express Ptd. LTd (ONE), and Yang Ming Joint Service Agreement (The Premier Alliance) would authorize the three to share vessels, charter or exchange vessel space, and discuss and agree on the size, number, and operational characteristics of vessels under the pact, among others.
The Premier Alliance would replace an existing one (The Alliance) that includes a fourth shipping company, Hapag-Lloyd.
The FMC said more time and information was needed to authorize an alliance for the second time this year. The first was when Hapag-Lloyd and Maersk filed to launch their Gemini Cooperation.
After Hapag-Lloyd’s exit from the existing alliance in favor of its new partnership with Maersk, the three firms announced last September that they had decided to maintain and strengthen their working relationship, including a separate arrangement with MSC Mediterranean Shipping Company.
HMM, ONE, and Yang Ming filed its Premier Alliance Agreement on Oct. 28, 2024. Agreements take effect 45 days after filing unless the Commission issues a request for additional information.
READ: ONE, HMM, Yang Ming confirm alliance partnership
The FMC uses the request to obtain documents and verify information needed to attain clarity on matters that were not addressed in the original document. It determined that the Premier Alliance Agreement as submitted lacked enough detail for a complete analysis of potential competitive impacts and whether the pact fully complies with statutory requirements.
The information gathered is not publicly published.
The agreement will not be reconsidered until the FMC has received a fully compliant response to its inquiry.
A 15-day public comment period begins once public notice of the request has been published in the Federal Register, set for next week.
The Premier Alliance Agreement would have gone into effect on Dec. 12, 2024, prior to the delay caused by the FMC action.
The Alliance was established in 2016 as one of three industrial collaborations. It began operations in April 2017 and involved 260 ships, making 82 port visits and providing 31 distinct services on the main commercial routes.
The agreement is set to begin in 2025 and will last for five years.
