The alliance of the world’s three largest container lines was approved by the FMC on Thursday with one commissioner Richard Lidinsky, dissenting.
The commission said its decision is based on a determination that the agreement is not likely at this time, to cause a reduction in competition. It was also not likely to produce an unreasonable increase in transportation costs or an unreasonable reduction in transportation service.
However, the alliance will be subject to new reporting requirements with the FMC noting there could be circumstances in the future that would allow the alliance to unreasonably reduce services or unreasonably raise freight rates.
"The commission’s action on the P3 agreement takes into account the comprehensive, competitive analysis conducted by the FMC staff and comments received from shippers and other stakeholders,” said FMC chairman Mario Cordero.
“While the agreement is expected to produce operational efficiencies for the benefit of the US consumer, the new reporting requirements specifically tailored to this agreement’s unique authority will ensure we have timely and relevant information to act quickly should it be necessary."
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