US shippers tell FMC to look at combined P3-G6 weight before ruling
US shippers' organisation, the National Industrial Transportation League (NITL), has urged the Federal Maritime Commission (FMC) not to consider the P3 network and G6 alliance proposals in isolation.
The NITL said in its submission that its members and shippers in general were focused on the "near-term reshaping of the competitive dynamics of the global containership market. For that reason we would urge the commission not to view each vessel sharing agreements (VSA) in isolation."
NITL said its members understood that well-structured VSAs and other forms of carrier joint-operating agreements can result in efficiencies, lower operating costs and enhanced service offerings. But it said its members were concerned by the "cumulative (or additive) impact on market competition from the combined effects of the G6 and P3 VSAs", Lloyd's List reported.
"And, given there are remaining containership operators who have not yet aligned themselves in such large scale VSAs, league members are left to wonder just how quickly some or all of them may respond to the G6 and P3 initiatives with a global VSA of their own," NITL said.
Containerisation International recently revealed that the G6 Alliance and P3 Network could have a combined market share of as much as 80 per cent of the transatlantic trade lane, if their proposals are approved.
Although the accumulative market share of 80 per cent on the transatlantic trade lane may be a concern for the carriers, lawyer Matthew Hall, of McGuire Woods, remarked that the European Commission might still allow the proposals to go ahead as long as the carriers could prove that their customers would benefit from the developments.
NITL raised other concerns about the G6 Alliance's plans to expand its presence to the transatlantic and transpacific US west coast trade lanes. "We expect the six partner carriers will operate independently of each other in pricing and service offerings.
"We would therefore ask that the commission focus its assessment of the G6 agreement on any and all aspects which might have an impact on competitive behaviour and/or competitive results in the US markets covered by the G6 agreement."
US shippers' organisation, the National Industrial Transportation League (NITL), has urged the Federal Maritime Commission (FMC) not to consider the P3 network and G6 alliance proposals in isolation.
The NITL said in its submission that its members and shippers in general were focused on the "near-term reshaping of the competitive dynamics of the global containership market. For that reason we would urge the commission not to view each vessel sharing agreements (VSA) in isolation."
NITL said its members understood that well-structured VSAs and other forms of carrier joint-operating agreements can result in efficiencies, lower operating costs and enhanced service offerings. But it said its members were concerned by the "cumulative (or additive) impact on market competition from the combined effects of the G6 and P3 VSAs", Lloyd's List reported.
"And, given there are remaining containership operators who have not yet aligned themselves in such large scale VSAs, league members are left to wonder just how quickly some or all of them may respond to the G6 and P3 initiatives with a global VSA of their own," NITL said.
Containerisation International recently revealed that the G6 Alliance and P3 Network could have a combined market share of as much as 80 per cent of the transatlantic trade lane, if their proposals are approved.
Although the accumulative market share of 80 per cent on the transatlantic trade lane may be a concern for the carriers, lawyer Matthew Hall, of McGuire Woods, remarked that the European Commission might still allow the proposals to go ahead as long as the carriers could prove that their customers would benefit from the developments.
NITL raised other concerns about the G6 Alliance's plans to expand its presence to the transatlantic and transpacific US west coast trade lanes. "We expect the six partner carriers will operate independently of each other in pricing and service offerings.
"We would therefore ask that the commission focus its assessment of the G6 agreement on any and all aspects which might have an impact on competitive behaviour and/or competitive results in the US markets covered by the G6 agreement."