The US Federal Maritime Commission (FMC) has cleared the proposal for the P3 alliance, formed by Denmark's Maersk Line, the Switzerland-based Mediterranean Shipping Company MSC and France's CMA CGM. The FMC ruling takes effect on Monday 24 March and will apply to trades between the USA and Asia, North Europe and the Mediterranean, FMC said in its press release.
The FMC said that at this time, the reduction in competition arising as a result of the agreement is not likely to produce an unreasonable increase in transportation costs or an unreasonable reduction in transportation services, pursuant to section 6(g) of the Shipping Act.
However, the commission notes that there may be circumstances that could permit the P3 agreement parties to unreasonably reduce services or unreasonably raise rates at some point in the future, which could raise concerns under section 6(g). It has directed staff to issue alternative reporting requirements to the P3 agreement parties, in order to assist the commission in its ongoing close monitoring of the agreement.