FMC REQUESTS FURTHER INFORMATION FROM PREMIER ALLIANCE
The US Federal Maritime Commission (FMC) has paused the entry into force of the Premier Alliance (HMM, ONE and Yang Ming) as it requested more information to determine the potential competitive impacts of the agreement.
In its request for additional information (RFAI) issued last week, the FMC considered that the Premier Alliance Agreement as submitted lacks sufficient detail to allow for a complete analysis of potential competitive impacts. Reconsideration of the agreement will not commence until the Commission has received a fully compliant response to its inquiry. The FMC has 45 days to review the agreement for competitive and legal concerns before it becomes effective.
The targeted operational start date of the Premier Alliance’s network services remains the beginning of February, and until then the carriers are still operating under THE Alliance vessel-sharing agreement.
CLECAT welcomes the FMC’s actions to ensure fair competition and prevent unfair practices, as it also sought further information from the Gemini Alliance earlier this year. With the end of the Consortia Block Exemption Regulation in April 2024, and despite the fact that consortia agreements are not approved ex ante by the European Commission, we hope that such developments would trigger an effective oversight of consortia/alliance agreements by European competition authorities. This oversight should enforce competition rules in the evolving landscape of the liner shipping industry, enhancing the accountability of shipping lines and trust between the stakeholders.
Source: FMC, The Loadstar