FMC demand more transparency in shipping alliance behaviour

FIATA e-flash
6 May 2022

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FMC now requires more alliance data in call for transparency

major update has emerged on the transparency of shipping alliance market behaviour. 2M, OCEAN, and THE, and each of their member companies will now need to provide enhanced pricing and capacity information, in a call from the US Federal Maritime Commission (FMC) that uniform data be provided. This information will be put to use in assessing ocean carrier behaviour and marketplace competitiveness.

The result of this action will mean a greater overview can be given to the Commission’s Bureau of Trade Analysis (BTA) on pricing of individual trade lanes, by container and service type. Capacity management decisions information of ocean carriers and alliances will also be given.

The BTA carried out a one-year study to gather data to analyse carrier behaviour and marketplace trends. 'Under the new requirements, carriers participating in an alliance will need to submit pricing information about cargo they move on the major trade lanes, and both carriers and alliances will be mandated to submit comprehensive information related to capacity management.' according to the FMC article.

The anticompetitive impact on the marketplace will also be analysed. After recent investigations were started by various organisations, including government authorities, it has become clear that the major three alliances are coming under scrutiny for attempting to become exempt from various shipping laws.

In the same vein, it recently emerged in an FMC investigation that Hapag-Lloyd incorrectly applied detention and demurrage (D&D) charges to 11 containers handled by California drayage firm Golden State Logistics (GSL). Meanwhile Wan Hai will have to settle claims brought against it concerning D&D charges for 21 boxes, the second carrier to settle a D&D claim. 

Agenda

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