FMC Chairman Calls for Global Regulatory Summit on P3 Alliance

MarineLink.com
Tuesday, October 22, 2013
Photo: CMA CGM

The U.S. Federal Maritime Commission Chairman, Mario Cordero, issued a call to fellow regulators in the European Union and the People’s Republic of China, to join with him in a Global Regulatory Summit on the proposed P3 Global Alliance of the world’s three largest container carriers, Maersk Line, CMA-CGM, and Mediterranean Shipping. The Summit would take place in Washington, D.C., with regulators to discuss their respective regulatory roles in considering the impact of the announced Alliance.

The three carriers announced they would begin cooperating in 2014 on routes covering Asia to Europe as well as transpacific and transatlantic routes to the United States. Early estimates by Maersk Line’s chief trading and marketing officer put market control of such an alliance at about 42% on the Asia to Europe route, 24% on the transpacific routes, and 40-42% on the transatlantic route. Indications are that the P3 network will be operated from new management offices in London and Singapore with a staff of approximately 200. The proposed Alliance has already named Maersk Line’s Lars Mikel Jensen as its Chief Executive Officer.

Joining in the call for the Summit is Commissioner William P. Doyle, who stated, "One of my concerns relates to media reports that a combined east-west fleet of 346 vessels will be reduced to 255 vessels once the proposed Alliance is consummated. I am interested in learning more about the impact this Alliance will have on services provided to consumers, shippers and U.S. terminal operations.’’ Commissioner Doyle added, "Maersk Line, Limited is the largest U.S.-flag carrier in the international fleet. To this end, I do not want the Alliance’s operations to harm or otherwise negatively impact the U.S.-flag international fleet when decisions are made to cascade or otherwise eliminate ships from service."

Commissioner Richard A. Lidinsky, Jr. also stated, "It is clear this Alliance is moving forward as if it has already met regulatory approval despite the lack of any significant filing with regulatory authorities in Europe, China or the U.S. Pushing behind the scenes and placing positive stories with the press is not a substitute for proper consideration of the consequences of this massive carrier alignment."

Commissioner Lidinsky will be attending the annual meeting of the European Maritime Law Organization this week in London where it is anticipated that the proposed P3 Alliance may be a topic of discussion.

Chairman Cordero continued, "Like my fellow Commissioners, I am keeping an open mind about the parameters and impact of this Agreement until it can be fully analyzed. The Commission is responsible for carrying out the congressionally-mandated goals of the Shipping Act, namely, non-discriminatory regulatory processes in harmony with and responsive to international shipping practices. Together with our European and Chinese counterparts, we as regulatory authorities, have responsibilities related not only to our nations, but to the global shipping structure to ensure that this proposed Alliance does not harm others, including consumers, the maritime community, and world trade. Once this agreement is filed, I envision all members of our American maritime industry — shippers, importers, exporters, consumers, ports, unions, intermodal entities — to fully express their views to the Commission in written comments or open hearings as to how this Alliance of foreign flag carriers would affect our waterborne commerce," the Chairman concluded.

fmc.gov
 

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

News

AAPA Elects Quinn as Chairman of the Board

The American Association of Port Authorities (AAPA) elected Jim Quinn, president and CEO of New Brunswick, Canada’s Port Saint John, to serve as the international

BHGI-designed ATB Unit Under Construction

Bristol Harbor Group, Inc. (BHGI) informs it is currently completing the detail design phase of a 399’ x 74’ x 30’ 80,000 BBL double hull oil tank barge and a 120’

Scorpio Bulkers Sells Three Newbuilds for $111m

Scorpio Bulkers Inc. announced that it has entered into agreements to sell three newbuild dry bulk vessels, including two Capesize ships and an Ultramax ship, for

People in the News

AAPA Elects Quinn as Chairman of the Board

The American Association of Port Authorities (AAPA) elected Jim Quinn, president and CEO of New Brunswick, Canada’s Port Saint John, to serve as the international

EPA Promotes Green Initiatives at Port of Houston

U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy visited the Port of Houston April 24 to highlight grants aimed at improving air quality. The port will receive about $900,

Six Washington Students Earn Maritime Scholarships

The 11th annual Norm Manly Puget Sound Maritime (PSM) / Youth Maritime Training Association (YMTA) Maritime Educational Scholarship competition was held on Saturday,

Government Update

EPA Promotes Green Initiatives at Port of Houston

U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy visited the Port of Houston April 24 to highlight grants aimed at improving air quality. The port will receive about $900,

Maritime Tension Dominates Southeast Asia Summit

Southeast Asian leaders edged closer to open criticism of China's land reclamation in the disputed South China Sea at a regional summit on Monday, as the Philippines

Lagos Port Drags on Africa's Top Economy

Ruling party reforms improved Apapa port; shippers still face delays and corruption. The road leading to the Lagos port, which handles nearly everything that Africa's biggest economy imports,

Logistics

Milaha Reports Improved Net Profit for Q1

Qatar Navigation (Milaha) Q.S.C. has announced its financial results for the three months ended March 31, 2015, in which it reported operating revenues of QR 786 million vs.

Truckers to Strike Four SoCal Shippers

Truckers who haul freight from the ports of Los Angeles and Long Beach will go on strike against four ground-shipment companies on Monday, a Teamsters union official said,

Maritime Tension Dominates Southeast Asia Summit

Southeast Asian leaders edged closer to open criticism of China's land reclamation in the disputed South China Sea at a regional summit on Monday, as the Philippines

 
 
Maritime Careers / Shipboard Positions Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
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: 0.2491 sec (4 req/sec)