Americas News
U.S. FMC "Stops the Clock" on Proposed Ocean Alliance
U.S. Federal Maritime Commission Thursday said it had "stopped the clock" on the proposed Ocean Alliance of CMA CGM, COSCO Container Lines, Evergreen Line, and OOCL, with Commissioner William P. Doyle saying he voted to in favour of a Request for Additional Information (RFAI) from the associated parties.
The Ocean Alliance agreement was filed with the Commission on July 15, 2016, and otherwise would have been effective this Monday, August 29, 2016.
"The RFAI effectively 'stops the clock' on this agreement until such time as the filing parties answer the questions proposed in the RFAI. Once those questions are answered and filed with the Commission, a new 45-day clock commences," FMC explained.
With existing agreements between box carriers still needing to run their course, Ocean Alliance is not set to begin in practice until April 2017.
In explaining his decision to request more information, Doyle said: "We’ve been down this road before with language proposed but not implemented by the P3 Alliance and the language in the existing 2M Alliance (Maersk and MSC).
"I’d like to see fair dealing and transparency in how the parties handle negotiations with third parties, suppliers, small businesses, and other service providers. Using their proposed buying power through proposed joint purchasing agreements could harm both downstream and upstream participants."
To that end, FMC said the existing 2M Alliance Agreement provides safeguards for U.S. third-parties.
"The 2M Parties must negotiate independently and enter into separate contracts with the third parties," it said.
In May, Ship & Bunker reported that it was said to be "unlikely" that Ocean Alliance would impact bunker and maritime players in Singapore.
