FMC to look at ‘slow steaming?

FMC to look at æslow steamingÆ    The Federal Maritime Commission voted Wednesday to issue a notice of inquiry (NOI) on “slow steaming,” the increasingly popular practice of operating containerships at reduced speeds.
   During a meeting, commissioners suggested some modifications to the NOI, so it will likely be Friday when it is finalized and posted on the agency’s Web site.
   Last year the FMC allowed the 15 carrier members of the Transpacific Stabilization Agreement to modify their discussion agreement so they could work together to implement slow steaming and other environmental initiatives, and Chairman Richard A. Lidinsky said last fall the agency was continuing “to watch how that plays out.”

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   Operating at reduced speeds cuts fuel use, reducing pollution and operating costs for carriers, but it can also lengthen customers’ supply chains by increasing transit times.
   Slow steaming has become so popular that more than half of transpacific services have adopted extra slow steaming, maritime information service Alphaliner said in October.
   Lowry Crook, counsel for the FMC, said the commission has the authority to investigate slow steaming under Section 6 (g) of the Shipping Act. Under the act, the FMC can seek an injunction against any agreement that it determines is “likely, by a reduction in competition, to produce an unreasonable reduction in transportation service or an unreasonable increase in transportation cost.” The agency has authority to do so “at any time after the filing or effective date of an agreement.”
   Cook noted that in addition to Lidinsky’s promise to “keep close watch” on how slow steaming affects the industry, Commissioner Michael Khouri said when he voted to approve the amendment, “the commission will closely monitor the transpacific trade to ensure that discussions permitted under the amendment will not result in capacity management and thus reduce transportation service.”
   Commissioner Rebecca Dye said, “I encourage staff to closely monitor the capacity situation in the transpacific trade to ensure that any coordinated slow steaming program discussed under this amendment does not function as a capacity management plan or adversely affect the international competitiveness of U.S. exporters.” ‘ Chris Dupin