FMC Approves G6 Alliance Agreement for Trans-Pacific Trade
The Federal Maritime Commission (FMC) approved an agreement between the G6 alliance, a group of six carriers that share vessel space, that will allow for more Trans-Pacific Trade for the group, said FMC Commissioner William Doyle in a March 12 statement. The alliance, made up of APL, Hapag-Lloyd, Hyundai Merchant Marine, Mitsui O.S.K. Lines, Nippon Yusen Kaisha and Orient Overseas Container Line filed the request with the FMC in February (see 13021217).
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The FMC approval will allow the G6 Alliance "to charter and exchange space on one another's vessels and to coordinate and cooperate with respect to the parties' transportation services and operations in the trade between ports in North Asia, South Asia, Middle East (including the Persian Gulf region), Spain, Italy, Egypt, Panama, Jamaica, and Canada, on the one hand, the U.S. East Coast ports via the Panama and Suez canals, on the other hand, as well as ports and points served via such U.S. and foreign ports," according to the G6 filing.
The partnership is scheduled to begin in May with six coordinated serve loops, three through the Suez Canal and three through the Panama Canal. "The increase in port calls will have a positive impact on jobs -- both in terms of retention and growth," said Doyle. "In addition, the G6 Alliance will employ at least six (6) U.S.-Flag vessels, as APL is working into the rotation U.S.-Flag, U.S.-operated, and U.S.-citizen crewed vessels. In allowing the agreement to go into effect, the Commission voted to monitor the G6 Alliance. Thus, the Commission will establish a special purpose monitoring program aimed at early detection of capacity coordination among carriers and agreements operating in the market."