U.S./AUSTRALASIA CARRIERSÆ PROPOSAL HITS SNAG AT FMC
A proposed trade sharing arrangement among six carriers of the U.S./Australasia agreement has run into a snag at the U.S. Federal Maritime Commission.
The carriers hoped to operate under a trade participation agreement starting Jan. 1, but the FMC said it needs more information to determine the agreement’s competitive impact on the trade.
The FMC’s action restricts the carriers from carrying out the arrangement until they provide answers to the commission's questions — which have not been made public — and the FMC takes action.
The FMC will analyze the carriers’ responses to see if it will allow the agreement to go into effect.
Under the proposed agreement, Australia-New Zealand Direct Line would receive the largest share, or 28.70 percent of the trade, followed by Columbus Line (26.93 percent); P&O Nedlloyd (21.08 percent); Contship Container Lines (12.11 percent) and Wallenius Wilhelmsen Lines (6.58 percent).
The trade shares would be in effect for one year, through Dec. 31.
If the carriers exceed their share limits as reported above, they would have to contribute $1,000 per container over their allotted limit.
The agreement would exclude U.S. West Coast transshipment cargoes from the trade participation shares.