THE Federal Maritime Commission (FMC) said it has initiated a review of an agreement with the World Shipping Council (WSC), to determine whether signatory ocean carriers are still covered by limited antitrust immunity, reports New York's FreightWaves.
The June 26 filing said that the agency 'aims to assess whether the activities undertaken by the WSC under this agreement align with the FMC's jurisdiction as outlined in the Shipping Act.
The central question is whether the cooperative working arrangement claimed by WSC is legitimately within the commission's purview, or if it falls outside the boundaries set by federal regulations.'
The WSC, which represents 90 per cent of global liner vessel services, was granted limited antitrust immunity under an agreement with the FMC in 2020.
This agreement allows member carriers to engage in various trade association activities such as exchanging information, discussing policies, and formulating common industry positions.
However, the FMC has raised concerns about whether these activities extend beyond the scope of cooperation intended to be regulated under the Shipping Act.
'I am not a big fan of the WSC and their approach. I have been very vocal on that always,' said FMC chairman Louis Sola, who is exiting the agency this week.
SeaNews Turkey
The June 26 filing said that the agency 'aims to assess whether the activities undertaken by the WSC under this agreement align with the FMC's jurisdiction as outlined in the Shipping Act.
The central question is whether the cooperative working arrangement claimed by WSC is legitimately within the commission's purview, or if it falls outside the boundaries set by federal regulations.'
The WSC, which represents 90 per cent of global liner vessel services, was granted limited antitrust immunity under an agreement with the FMC in 2020.
This agreement allows member carriers to engage in various trade association activities such as exchanging information, discussing policies, and formulating common industry positions.
However, the FMC has raised concerns about whether these activities extend beyond the scope of cooperation intended to be regulated under the Shipping Act.
'I am not a big fan of the WSC and their approach. I have been very vocal on that always,' said FMC chairman Louis Sola, who is exiting the agency this week.
SeaNews Turkey
