FMC Approval Remains in Effect for P3 Alliance Despite Chinese Denial
While China's Ministry of Commerce recently decided against allowing for the P3 Network Sharing Agreement, the Federal Maritime Commission's approval will remain in effect, the FMC said. The agency took a long look and ultimately approved the pact (see 14032117),…
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
which would allow for regional vessel sharing among the three largest container carriers: Maersk Line, CMA-CGM, and Mediterranean Shipping Company. "The Commission’s decision remains in effect absent a withdrawal of the agreement by the parties," it said. FMC Chairman Mario Cordero touted the effects of carrier alliances in a statement. "Ocean carrier vessel space alliances offer the potential benefit of cost savings and environmental efficiencies that come from coordinated deployment of newer, larger vessels," he said. "The FMC, in evaluating such agreements, will continue to balance those benefits with the potential harm from a concentration of decision-making power in terms of port coverage, sailing schedules, and necessary trade lane capacity."