THE Alliance to Become Effective Monday, December 19, 2016

December 14, 2016

NR 16-27

The Federal Maritime Commission (FMC) has concluded its review of the proposed “THE Alliance” agreement (FMC Agreement No. 012439), allowing it to become effective on December 19, 2016.

The Commission voted to allow the agreement to become effective following a period of substantive and constructive discussion with the parties.

Attorneys acting on behalf of THE Alliance submitted the application to establish the agreement on November 4, 2016. The Commission made no Request for Additional Information, clearing the way for the agreement to come into force within the initial 45-day review period.

“I am very cognizant of the concerns industry stakeholders had regarding provisions in this agreement, particularly those related to information sharing and joint procurement,” stated Federal Maritime Commission Chairman Mario Cordero. “This office will continue to carefully focus on the impacts of the carrier alliance restructuring that is taking place in the shipping industry. Considerable review and analysis goes into assessing a final agreement before it is allowed to go into force and I am grateful for the hard work of Commission staff.”

THE Alliance is comprised of five different container shipping companies: Hapag-Lloyd; K Line; MOL; NYK; and Yang Ming.

The scope of this agreement applies only to trade lanes between the United States and other nations. Cargo moved by carriers in THE Alliance that does not originate or terminate in the United States is not covered by this agreement. Under the terms of the agreement, THE Alliance members are permitted to share vessels, charter and exchange space on each other’s ships, and enter into cooperative working arrangements.

The Federal Maritime Commission is responsible for regulating the Nation’s international ocean transportation for the benefit of exporters, importers, and the American consumer. The Commission’s mission is to foster a fair, efficient, and reliable international ocean transportation system while protecting the public from unfair and deceptive practices.