The FMC delayed approval of a new alliance, Premier, set up by Mitofunata
On December 6, local time, the United States Federal Maritime Commission (FMC) announced that it postponed the approval of the new Alliance Premier Alliance (hereinafter referred to as the "Premier Alliance") planned to be established by Japan Ocean Network Alliance (ONE), Yangming Shipping Co., LTD. (hereinafter referred to as "Yangming Shipping") and Hanxin Shipping (HMM).
The FMC said it made the request for more information because it needed documentation and verifiable information to determine the competitive impact of the alliance. The original application "lacked sufficient detail to conduct a full analysis of the potential competitive effects and to determine whether the agreement fully complied with all statutory requirements."
The new Premier alliance involves issues such as ship sharing, space exchange, and the ability of the three companies to discuss and agree on issues such as the size, number and operational characteristics of the ships. According to the review rules initiated by the FMC, the FMC will retain the right to approve the agreement while awaiting the additional information requested. Once the FMC considers the application complete, the agency will have a further 45 days to review it.
FMC's move comes a day after the Premier Alliance announced details and plans for its first voyages. The alliance plans to expand operations from February 2025, proposing to open 24 routes on east-west routes.
This is the second time this year that the FMC has said it needs more time and information to approve the alliance, after the agency took similar steps against Maersk and Hapag-Lloyd's Gemini alliance.
In July 2024, the FMC delayed approval of the Gemini Alliance for similar reasons. Two months later, the agency gave final approval to the partnership agreement despite continuing concerns about the impact on competition. Daniel Maffei, chairman of the FMC, said the agreement would move forward due to the tight time frame, but the commission would continue to monitor its implementation closely. Complaints about alliances among major shipping companies and the concentration of the three major alliances within the industry have raised concerns about reforms to the FMC's powers and called on the U.S. Congress to strengthen regulation to ensure competition among shipping companies.
The FMC said it made the request for more information because it needed documentation and verifiable information to determine the competitive impact of the alliance. The original application "lacked sufficient detail to conduct a full analysis of the potential competitive effects and to determine whether the agreement fully complied with all statutory requirements."
The new Premier alliance involves issues such as ship sharing, space exchange, and the ability of the three companies to discuss and agree on issues such as the size, number and operational characteristics of the ships. According to the review rules initiated by the FMC, the FMC will retain the right to approve the agreement while awaiting the additional information requested. Once the FMC considers the application complete, the agency will have a further 45 days to review it.
FMC's move comes a day after the Premier Alliance announced details and plans for its first voyages. The alliance plans to expand operations from February 2025, proposing to open 24 routes on east-west routes.
This is the second time this year that the FMC has said it needs more time and information to approve the alliance, after the agency took similar steps against Maersk and Hapag-Lloyd's Gemini alliance.
In July 2024, the FMC delayed approval of the Gemini Alliance for similar reasons. Two months later, the agency gave final approval to the partnership agreement despite continuing concerns about the impact on competition. Daniel Maffei, chairman of the FMC, said the agreement would move forward due to the tight time frame, but the commission would continue to monitor its implementation closely. Complaints about alliances among major shipping companies and the concentration of the three major alliances within the industry have raised concerns about reforms to the FMC's powers and called on the U.S. Congress to strengthen regulation to ensure competition among shipping companies.
