FMC orders closer monitoring of ship alliances

FMC orders closer monitoring of ship alliances    The Federal Maritime Commission has issued a rule to more tightly monitor the three global ocean shipping alliances.
   The New World, Grand and CKYH alliances have each filed agreements with the FMC that give them the authority in multiple U.S. trade lanes to discuss and collectively implement capacity rationalization and limit the number of vessels or space offered to shippers in any trade route.
   Closer monitoring of the alliance was one of the recommendations that the FMC adopted last summer growing out of an investigation into the ship capacity and container availability problems that many shippers complained about in 2009 and 2010.
   “By early 2010, increases in import volumes collided with previous vessel capacity reductions” creating “serious supply chain disruptions for American importers and exporters,” the FMC noted, explaining why it was taking the action.
   The alliances will have to provide agendas for meetings by senior-level committees that approve capacity and schedule planning and file monitoring reports on a monthly instead of quarterly basis. They will also have to provide notice of planned changes in capacity of more than 5 percent, whether temporary or permanent.
   The changes go into effect Jan. 24, and the new policy will be reviewed in two year. ' Chris Dupin