FMC Commissioner Doyle Gives Qualified Thumbs Up to P3 Network

MarineLink.com
Thursday, March 20, 2014
Official photo of the Commissioner

"I am in favor of not taking any further action to delay the implementation of the P3 Network Vessel Sharing Agreement," announced FMC Commissioner William P. Doyle. (The P3 Network Alliance consists of container shipping  companies A.P. Moller-Maersk A/S trading under the name of Maersk Line, CMA-CGM S.A. and MSC Mediterranean Shipping Company, S.A.).  Extracts from the Commissioner's statement follow:

"I have reviewed all the comments submitted by the public, submitted my own questions to the P3 Parties as part of the Commission’s request for additional information (RFAI), and reviewed the P3 Parties’ RFAI responses.  I am particularly pleased that the P3 Parties have reconsidered how they would handle negotiations with third parties, suppliers, small businesses, and other service providers. 

I also appreciate Maersk’s long-standing commitment and support to the United States with respect to jobs, management of U.S.-government owned ships and the commercial ships it has registered under the U.S.-Flag.  In addition, the P3 Network Alliance claims it will deliver significant environmental benefits through substantially lower fuel consumption thereby significantly reducing CO2 emissions.

I do want to offer a word of caution, the P3 Parties should be mindful of the antitrust probes that are being conducted in the ocean-borne transportation sector – worldwide. To this end, the Federal Maritime Commission is not taking its hands off the wheel and is hereby instituting a monitoring program for the P3 Network Alliance. 
 
FMC Monitoring Program
The P3 agreement activities will be monitored by the Federal Maritime Commission throughout the life of the P3 Network Vessel Sharing Agreement (and as it may be amended from time to time).  The monitoring system is intended to provide an early warning system to detect capacity issues and market problems.  FMC’s monitoring activities include: 

  • Regular communication between Commission staff and Network Center to discuss operations, schedules, processes, and business rules.
  • Submission of certain actions by P3 members ensuring independence of individual lines’ and autonomy of the Network Center.
  • Ensuring adherence to the Agreement and autonomy of the Network Center irrespective of individual carrier interests. 
  • Advance notification of cancelled sailings and any service modification resulting in changes in average weekly capacity.
  • Monitoring of rates in connection with actions altering capacity. 
  • Monitoring of activities in connection with third parties that might demonstrate prohibited acts or other behavior that might threaten competition.


In conclusion, it appears that the P3 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. However, the Commission is instituting a monitoring program to help ensure that the P3 Parties play by the rules.  In addition, safeguards have been drafted into the Agreement to ensure that the P3 Parties negotiate independently and enter into separate contracts with the third parties. " 


 

 

 

 

 

Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

NASSCO Invests in Facilities, Equipment and People

General Dynamics NASSCO has invested several hundred million in capital projects as part of its efforts to increase efficiencies via  modular shipbuilding, including:

Thordon Bearings Names New China Distributor

Thordon Bearings Inc. of Canada announced that CY Engineering Co. Ltd. will take over as the new authorized distributor for the People’s Republic of China, including Macau and Hong Kong,

General Ship Repair: A Family Affair

The General Ship Repair Corporation, a fixture on the Baltimore water front for nearly a century, continues to build a strong business while preparing for fourth generation ownership.

Legal

Migrant Boat Sinks off Libya; 200 Feared Dead

A boat packed with mainly African migrants bound for Italy sank off the Libyan coast on Thursday and officials said up to 200 might have died. A security official in the western town of Zuwara,

Wärtsilä Scrubbers for Finnlines Vessels

Finnlines, a Ro-Ro and passenger vessel operator with services in the North and Baltic Seas, has contracted Wärtsilä to supply three vessels with exhaust cleaning scrubber systems.

North Korean Black-listed Ships in Russia

North Korean vessels owned by Ocean Maritime Management (OMM) have been seen using Russian ports, says the NK News vessel tracker.   OMM was sanctioned for its

Container Ships

CFSAI Shifts to New Office in New Mumbai

Container Freight Station Association of India (CFSAI) has set up a full-fledged Secretariat and moved to its new office at “Anchorage Building” in Dronagiri  Node on 26th August 2015.

DP World H1 Earnings Jump, Mulls Iran launch

DP World may launch operations in Iran, the company's chairman said on Thursday, as the global ports operator reported a jump in half-year earnings after buying assets from its parent company.

Hapag-Lloyd Swings to Profit in H1 2015

German container carrier Hapag-Lloyd is starting to see the commercial benefits of its integration with the container shipping arm of Compañía Sud Americana de Vapores (CSAV),

Government Update

Iranian Ship, Crew Escape Captivity off Somali Coast

An Iranian fishing vessel and its crew have escaped after being held captive for five months by Somali fishermen, maritime piracy experts said on Friday, but it

Migrant Boat Sinks off Libya; 200 Feared Dead

A boat packed with mainly African migrants bound for Italy sank off the Libyan coast on Thursday and officials said up to 200 might have died. A security official in the western town of Zuwara,

Oil Steadies as Equities Rally

Recovering stock markets boost oil prices; U.S. crude on track for first weekly gain in nine weeks. Oil prices steadied on Friday after bouncing back from six-and-a-half-year

Logistics

Migrant Boat Sinks off Libya; 200 Feared Dead

A boat packed with mainly African migrants bound for Italy sank off the Libyan coast on Thursday and officials said up to 200 might have died. A security official in the western town of Zuwara,

Oil Steadies as Equities Rally

Recovering stock markets boost oil prices; U.S. crude on track for first weekly gain in nine weeks. Oil prices steadied on Friday after bouncing back from six-and-a-half-year

Dutch Green Ports to be Model for Turkey

Netherlands will be a model for Turkey’s ports within an environmentally-friendly Green Port implementation, says Daily News.   Port of Amsterdam and Dutch officials

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.6299 sec (2 req/sec)