FMC Concludes Review of P3 Agreement (USA)
- Business & Finance
The Federal Maritime Commission of the United States has concluded an extensive review of the proposed P3 Network Vessel Sharing Agreement, FMC Agreement No. 012230.
The pending agreement between A. P. Moller-Maersk A/S, CMA CGM S.A., and MSC Mediterranean Shipping Company, S.A. would authorize the parties to share vessels and engage in related cooperative operating activities in the trades between the U.S. and Asia, North Europe, and the Mediterranean. The Commission’s decision, from which Commissioner Lidinsky dissents, will allow the Agreement to become effective as of Monday, March 24, 2014.
The Commission notes that there may be circumstances that could permit the P3 Agreement in the future, to unreasonably reduce services or raise rates that could raise concerns. To avoid this, the Commission has issued reporting requirements to its staff to monitor the agreement’s implementation.
“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. While the agreement is expected to produce operational efficiencies for the benefit of the U.S. 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,” said Chairman Cordero.
Federal Maritime Commission, March 21, 2014