The Federal Maritime Commission concludes a review of the proposed amendment to the G6 Alliance Agreement
The Federal Maritime Commission announced that it has concluded a comprehensive review of the proposed amendment to the G6 Alliance Agreement, FMC Agreement No. 012194-002 including the information received from the agreement parties in response to the FMC’s request for additional information, Federal Maritime Commission said in its press release.
The pending agreement between American President Lines, Hapag Lloyd AG/USA, Hyundiai Merchant Marine, Mitsui OSK Lines, Nippon Yusen Kaisha, and Orient Overseas Container Line would expand the current geographic scope to allow G6 operational cooperation in the trades between the Far East and the U.S. West Coast, and between North Europe and all U.S. coasts. The Commission's unanimous decision will allow the Agreement to become effective as scheduled on Friday, April 4, 2014.
The Commission’s decision is based on a determination that the agreement is not likely at this time, by 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.
"The Commission’s action on the G6 Alliance is based on an extensive, competitive analysis conducted by the Commission’s staff and comments received by shippers and other industry participants. The Commission will continue to review the competitive impact of global alliances. This Alliance will considerably increase available capacity in the expanded geographic scope, and has the potential to generate operational efficiencies and positive environmental benefits," said Chairman Cordero.
The Federal Maritime Commission is the federal agency responsible for regulating the nation’s international ocean transportation for the benefit of exporters, importers, and the American consumer. The FMC’s mission is to foster a fair, efficient, and reliable international ocean transportation system while protecting the public from unfair and deceptive practices.