April 7 - Following its approval of the P3 Alliance, the Federal Maritime Commission has announced that it has concluded a comprehensive review of the proposed amendment to the G6 Alliance Agreement, FMC Agreement No. 012194-002 including the information
The pending agreement between American President Lines, Hapag Lloyd AG/USA, Hyundiai Merchant Marine, Mitsui OSK Lines, Nippon Yusen Kaisha, and Orient Overseas Container Line would expand the current geographic scope to allow G6 operational cooperation in the trades between the Far East and the U.S. West Coast, and between North Europe and all U.S. coasts.
The Commission's unanimous decision means the Agreement became effective as scheduled on Friday, April 4, 2014, the FMC said in a press release.
The Commission's decision is based on a determination that the agreement is not likely at this time, by a reduction in competition, to produce an unreasonable increase in transportation cost or an unreasonable reduction in transportation service under section 6(g) of the Shipping Act.
"The Commission's action on the G6 Alliance is based on an extensive, competitive analysis conducted by the Commission's staff and comments received by shippers and other industry participants. The Commission will continue to review the competitive impact of global alliances. This Alliance will considerably increase available capacity in the expanded geographic scope, and has the potential to generate operational efficiencies and positive environmental benefits," said Chairman Cordero.