FMC grants China Shipping affiliate rate flexibility

FMC grants China Shipping affiliate rate flexibility    The U.S. Federal Maritime Commission has granted an exemption to China Shipping Container Lines (Hong Kong) Co., Ltd. from certain pricing restrictions applicable to government-controlled carriers, about one year after granting the same exemption to the petitioner’s parent company, China Shipping Container Lines Co. Ltd.
   In November, China Shipping Container Lines (Hong Kong), a new wholly owned subsidiary of Chinese government-controlled China Shipping Container Lines, requested that the FMC exempt it from the first sentence of section 9(c) of the Shipping Act of 1984. The commission has determined to grant the petition and exempt China Shipping Container Lines (Hong Kong) from the provision of section 9(c),which prohibited the carrier from reducing its tariff rates until 30 days
after publication. The shipping line can now reduce tariff rates immediately on publication.
   The FMC accepted the carrier’s arguments that granting the petition would not result in a substantial reduction in competition, and would not be detrimental to commerce.
   But the exemption is not permanent. “The commission retains its full authority to revoke the instant exemption subject to the requirements of section 16,” the agency said in a statement. “Furthermore, China Shipping Container Lines (Hong Kong) will remain subject to the requirement that it maintain just and reasonable rates, and to all other provisions of the Shipping Act.”
   The FMC classified China Shipping Container Lines (Hong Kong) as a controlled carrier in December.
   Last April, the FMC also granted an exemption to China Shipping Container Lines Co. Ltd. from the tariff restrictions of section 9(c) of the Shipping Act.