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

People & Company News

Baltic Sea Freight Index Edges Higher

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, edged higher on Monday as rates rose for vessels across all segments.

Rotterdam Gate LNG Terminal Expansion Started

Dutch gas network operator Gasunie and tank storage service provider Vopak said on Monday that the expansion of their Gate liquefied natural gas (LNG) terminal in Rotterdam has begun.

BMT Expands to Meet Increased Workload

BMT Nigel Gee (BMT), a subsidiary of BMT Group, has announced the completion of new offices in Southampton in order to meet a large increase in design work.   Operating

Legal

China's Air Drills Roil South China Sea Waters

China's air force conducted its first drill above the western Pacific Ocean on Monday, the Defence Ministry said, in a move that could exacerbate tensions with

Drydocks World, Maritime World Win Excellence Awards

Drydocks World and Maritime World have won the Excellence Award given by the International Maritime Club at the Golden Bells Awards 2015 - Middle East. Drydocks

Ocean 3 launched at the AGCT, Rijeka

China Shipping Container Line’s (CSCL) Xin Qin Huang Dao recently made its maiden call at the Adriatic Gate Container Terminal (AGCT), International Container Terminal Services, Inc.

Container Ships

Syria Taps World Wheat Market as Stocks Run Down

Weeks after Syria said it had no need for wheat imports, the government plans to import 150,000 tonnes and has introduced ways to conserve grain stocks in signs

CMA CGM to Add Ships, Pursue More Economies

CMA CGM, the world's third-largest container shipper, announced on Monday plans to order three giant vessels and said higher volumes and profit last year showed

Ocean 3 launched at the AGCT, Rijeka

China Shipping Container Line’s (CSCL) Xin Qin Huang Dao recently made its maiden call at the Adriatic Gate Container Terminal (AGCT), International Container Terminal Services, Inc.

Government Update

Syria Taps World Wheat Market as Stocks Run Down

Weeks after Syria said it had no need for wheat imports, the government plans to import 150,000 tonnes and has introduced ways to conserve grain stocks in signs

Keppel FELS Delivers 11th Jackup to Mexico

Keppel FELS Limited (Keppel FELS), a wholly owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has delivered a KFELS B Class jackup rig to Mexican national oil company,

IMCA DP Proposal to be Basis for Updating IMO Guidelines

The International Maritime Organization (IMO) has agreed to use the International Marine Contractors Association (IMCA) proposals as the basis for the review of

Logistics

Baltic Sea Freight Index Edges Higher

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, edged higher on Monday as rates rose for vessels across all segments.

Rotterdam Gate LNG Terminal Expansion Started

Dutch gas network operator Gasunie and tank storage service provider Vopak said on Monday that the expansion of their Gate liquefied natural gas (LNG) terminal in Rotterdam has begun.

Syria Taps World Wheat Market as Stocks Run Down

Weeks after Syria said it had no need for wheat imports, the government plans to import 150,000 tonnes and has introduced ways to conserve grain stocks in signs

 
 
Maritime Contracts Maritime Security Naval Architecture Offshore Oil Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2302 sec (4 req/sec)