MAERSK Line and Mediterranean Shipping Co (MSC), the world's biggest container carriers, have won approval from US Federal Maritime Commission to start their vessel sharing agreement, Reuters reports.
While announcing the approval, the one of five dissenting commissioners, Richard Lidinsky, said the FMC should establish a vigorous monitoring system, as recommended by the China Shippers Association.
Said Maersk: "The US was the only remaining jurisdiction where the parties had to obtain formal approval. Thus, the parties can now implement the agreement as planned."
The 2M alliance involves the two carriers forging their 185 containerships on main east-west routes into a conveyor belt-like asystem, but each selling slots at their own prices through competing sales departments.
Maersk Line said the arrangement would save it US$350 million a year while protesting shipper European and Chinese shipper associations say it would give the two undue market influence to reduce port calls and raise prices.
2M follows the rejection in June of the P3, a larger venture that would have included France's CMA CGM as well as Denmark's Maersk and the Swiss Italian shipping giant, MSC.
While passing muster with the American FMC, P3 was banned by China's Ministry of Commerce for having too great a share of the market.
Maersk and MSC still need to win over regulators in Europe and China for the pact.
2M would have the largest market share of all main shipping alliances on key trade routes, with 35 per cent of the Asia-Europe route, 31 per cent of transatlantic trade and 22 per cent of transpacific, according to FMC figures.
The Asian Shippers' Council, which represents 20 national and regional exporter groups, said maritime authorities like the FMC and China's Ministry of Commerce should toughen regulations on shipping alliances.
2M has a 32 per cent market share on Asia-Europe trade routes, which some say should spark immediate regulatory review, but Maersk argues that lower transatlantic and transpacific market shares should be counted, which would bringing its market share down to an acceptable 30 per cent.
WORLD SHIPPING
10 October 2014 - 22:09
Maersk-MSC 2M alliance wins US approval, plans to start in January
MAERSK Line and Mediterranean Shipping Co (MSC), the world's biggest container carriers, have won approval from US Federal Maritime Commission to start their vessel sharing agreement, Reuters reports.
WORLD SHIPPING
10 October 2014 - 22:09
Maersk-MSC 2M alliance wins US approval, plans to start in January
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