US FMC seeks greater regulatory scrutiny into TSA-WTSA merger deal
THE Transpacific Stabilisation Agreement (TSA), the quasi conference of the Asia-US shipping lines, has become subject to greater scrutiny as the US Federal Maritime Commission (FMC) demands more information about its proposal to merge with the Westbound Transpacific Stablisation Agreement (WTSA) that covers the US-to-Asia trade.
"Since these are two important talking agreements encompass the majority of US containerised trade, the commission is definitely going to give this proposal its highest level of examination," said FMC secretary Karen Gregory.
TSA describes itself as a discussion agreement of 15 container carriers that move more than 90 per cent of the cargo from the Far East and Indian sub-continent to the United States, which recommends common rates to its members.
TSA changed its mission to extend itself to the full roundtrip transpacific trade, adding the trade from the United States to the Far East and the Indian subcontinent, joining the westbound Transpacific Stabilisation Agreement to itself, reported American Shipper.
The FMC said its request forestalls any completion of the deal, and it has asked interested parties for comments by February 20, that is 15 days after its notice of its request appeared in the Federal Register.
TSA executive administrator Brian Conrad said the purpose of the merger is to cut cost, noting that other carrier agreements are represented by a single group which includes the roundtrip.
"Since they operate their business on a roundtrip basis, it only makes sense to view the two segments as an integrated whole from an agreement perspective as well," Mr Conrad said.
THE Transpacific Stabilisation Agreement (TSA), the quasi conference of the Asia-US shipping lines, has become subject to greater scrutiny as the US Federal Maritime Commission (FMC) demands more information about its proposal to merge with the Westbound Transpacific Stablisation Agreement (WTSA) that covers the US-to-Asia trade.
"Since these are two important talking agreements encompass the majority of US containerised trade, the commission is definitely going to give this proposal its highest level of examination," said FMC secretary Karen Gregory.
TSA describes itself as a discussion agreement of 15 container carriers that move more than 90 per cent of the cargo from the Far East and Indian sub-continent to the United States, which recommends common rates to its members.
TSA changed its mission to extend itself to the full roundtrip transpacific trade, adding the trade from the United States to the Far East and the Indian subcontinent, joining the westbound Transpacific Stabilisation Agreement to itself, reported American Shipper.
The FMC said its request forestalls any completion of the deal, and it has asked interested parties for comments by February 20, that is 15 days after its notice of its request appeared in the Federal Register.
TSA executive administrator Brian Conrad said the purpose of the merger is to cut cost, noting that other carrier agreements are represented by a single group which includes the roundtrip.
"Since they operate their business on a roundtrip basis, it only makes sense to view the two segments as an integrated whole from an agreement perspective as well," Mr Conrad said.