NYK decides to exit Transpacific Stabilization Agreement

Fellow Japanese ocean carrier “K” Line exited the Transpacific Stabilization Agreement Aug. 19, while MOL, the other major ocean carrier based out of Japan, left the group in 2008.    Filings wit the Federal Maritime Commission (FMC) show that Japanese ocean carrier NYK is leaving the Transpacific Stabilization Agreement (TSA) on the heels of “K” Line exiting the group on Aug. 19.
   The other major Japanese ocean carrier, MOL, left the discussion agreement in 2008.
   No reason was provided in the filing by TSA’s attorneys with the FMC on why NYK and “K” Line chose to leave.
   TSA said that it typically leaves it up to carriers to comment on the reasons for leaving the group.
   It was not clear if the decision was related to the announcement made by the three Japanese carriers at the end of October that they plan to form a joint venture with their container businesses.
   Back in October 2008, when MOL announced it was leaving the TSA as well as the Canada Transpacific Stabilization Agreement (CTSA), it explained, “With the European Union’s abolition of liner anti-trust immunity, it has become extremely difficult to align the business processes of our entire organization when its regional divisions must operate to differing standards. Having done a thorough analysis of marketplace dynamics and the roles of TSA/CTSA relative to our unique ability to differentiate, we concluded MOL and its customers would be better served by conducting business independently from transpacific liner agreements.”
   China Shipping Container Lines also left the TSA in March after it merged with COSCO.