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CKYHE expansion to US trades gets FMC green light

CKYHE expansion to US trades gets FMC green light
The Federal Maritime Commission's (FMC) William Doyle will not delay the implementation of the CKYHE alliance on US trades.

The alliance of Cosco, Kawasaki Kisen Kaisha (K Line), Yang Ming, Hanjin Shipping and Evergreen Line filed papers to extend its existing agreement on Asia-Europe and Mediterranean trades to its US services in October, with the hope of starting services in spring 2015.

Over a period of 45 days each line sent a representative to meet Doyle and answer his questions, including some focussed on third party suppliers and small businesses, which led to alterations to the text of the slot allocation agreement.

The commission will monitor the alliance closely, with regular briefings for Doyle from his staff, particularly focussed on possible anti-competitive practices.

"It appears that the CKYHE Agreement is not likely, through a reduction in competition, to result in an unreasonable increase in transportation service or an unreasonable increase in transportation costs," Doyle concluded in his statement.

Maersk Line and MSC have gained Federal Maritime Commission (FMC) approval for the "2M" alliance, and CMA CGM have rebounded from the Chinese blocking the P3 alliance by forming the "Ocean Three" with United Arab Shipping Company (UASC) and China Shipping, which recently cleared the FMC's low market threshold parameter.