The Federal Maritime Commission has initiated a probe into the Terminal Service Agreements (TSAs) between Port Houston and several major container lines.
The agency said in a July 11 filing that the nonadjudicatory investigation will examine the Terminal Service Agreements (TSAs) between Port Houston and several major container lines, to determine if these agreements compel certain carriers to route a percentage of their loaded containers through Port Houston and away from competing Gulf hubs.
A TSA is a contract between port and carrier spelling out the terms and conditions for the use of port facilities and services.
At the heart of the inquiry is the Commitment Clause and Shortfall Amount embedded within these TSAs. These provisions potentially obligate participating carriers including CMA CGM, Evergreen Line Joint Service, Hapag-Lloyd (OTC: HLAGF), Maersk Line, Mediterranean Shipping Co., and Zim Integrated Shipping Services Ltd. (NYSE: ZIM) to ensure a specific volume of container traffic through the Texas gateway.
The FMC’s Bureau of Enforcement, Investigations, and Compliance (BEIC), will scrutinize the circumstances leading to the formation, signing, and enforcement of these clauses, the filing stated.
Houston handled a record 4.12 million twenty foot equivalent units (TEUs) in 2024, up 8% y/y.
Find more articles by Stuart Chirls here.
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