FMC's Lidinsky Calls For "Global Regulatory Approach" to Box Shipper Alliances

by Ship & Bunker News Team
Tuesday November 11, 2014

The U.S. Federal Maritime Commission's (FMC) Richard Lidinsky Friday told the European Maritime Law Conference in London that the container shipping industry needs a "global regulatory approach" given the size of new shipping alliances, JOC reports.

"I feel that it is possible to have coordinated and harmonized actions by all regulatory authorities who wish to participate," said Lidinsky, while acknowledging the difficulties in taking a global approach

Lidinsky told the conference that the four major global alliances would control 95 percent of global container cargo volumes when fully operational.

2M and Ocean Three are preparing to launch operationally while the G6 Alliance and CKYHE Alliance are said to be looking to increase cooperation.

"One gets the impression that certain carriers favor what I call the ATM antitrust approach, i.e., give us our immunity in 45 seconds," said Lidinsky.

He further railed against the "unbridled sense of entitlement by the carriers filing their agreements."

"[Box shippers] fail to acknowledge that the real demons in their corporate existence — overcapacity, weak rates, unsustainable GRIs, equipment shortages, and port congestion — are of their own making and not the result of any ruling by the EU, PRC or FMC," he added.

Lidinsky was the only Commissioner to vote against the approval of 2M in October and was recently said to have been critical of the FMC's expedited clearance of the Ocean Three alliance.

Ship & Bunker News Team
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