The Federal Maritime Commission voted to allow an amendment to THE Alliance Agreement to go into effect that permits establishing a contingency fund that can be used to help member carriers manage through, and recover from, the insolvency or financial distress of a participating line.
The amendment to THE Alliance was submitted on August 14, 2017, and the Commission granted the request of petitioning parties for an expedited review. The amendment is effective immediately, The Federal Maritime Commission said in its press release.
"THE Alliance sought this amendment to address marketplace issues and consumer concerns. This amendment reflects the market process in action," stated Federal Maritime Commission Acting Chairman Michael Khouri.
THE Alliance Agreement is comprised of five container shipping lines: Hapag-Lloyd; K Line; MOL; NYK; and Yang Ming. Under the terms of the agreement, THE Alliance members are permitted to share vessels, charter and exchange space on each other’s ships, and enter into cooperative working arrangements.
The Federal Maritime Commission is responsible for regulating the Nation’s international ocean transportation for the benefit of exporters, importers, and the American consumer. The Commission’s mission is to foster a fair, efficient, and reliable international ocean transportation system while protecting the public from unfair and deceptive practices.