Monday, April 7, 2014
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Federal Maritime Commission approves G6 Alliance expansion
Photo Credit: Press-Telegram
The Federal Maritime Commission has approved a proposed amendment to the G6 Alliance agreement that will expand its scope to allow the cooperation to extend to trades between the Far East and the U.S. West Coast, and between North Europe and all U.S. coasts, according to an FMC statement.
The members of the G6 include APL, Hapag Lloyd, Hyundai Merchant Marine, MOL, NYK, and OOCL.
The commission said its unanimous decision will allow the agreement to become effective on April 4, 2014, and is based on the decision that the agreement is not likely to result in "an unreasonable increase in transportation cost or an unreasonable reduction in transportation service under section 6(g) of the Shipping Act."
The G6 Alliance amendment adds 17 services to the original agreement. The shipping lines plan to jointly share the operation and space on between 180 to 220 container ships with a maximum capacity of 14,000 TEUs.
"The commission’s action on the G6 Alliance is based on an extensive, competitive analysis conducted by the commission’s staff and comments received by shippers and other industry participants,” said FMC Chairman Mario Cordero in the statement. “The commission will continue to review the competitive impact of global alliances. This alliance will considerably increase available capacity in the expanded geographic scope, and has the potential to generate operational efficiencies and positive environmental benefits."
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