2M Agreement Clears FMC Regulatory Review
Contact: Karen V. Gregory, Secretary (202-523-5725)
The Federal Maritime Commission (FMC) announced today that it has concluded its review of the proposed Maersk/MSC Vessel Sharing Agreement, FMC Agreement No. 012293 including evaluation of information received from the agreement parties in response to staff and Commissioner questions raised during the review period. The pending agreement between A. P. Moller-Maersk A/S, and MSC Mediterranean Shipping Company, S.A. would authorize the parties to share vessels and engage in related cooperative operating activities in the trades between the U.S. and Asia, North Europe, and the Mediterranean.
The Commission’s decision, from which Commissioner Lidinsky dissents, will allow the Agreement to become effective, as scheduled on Saturday, October 11, 2014. The Commission’s decision is based on a determination that the agreement is not likely at this time, by a reduction in competition, to produce an unreasonable increase in transportation cost or an unreasonable reduction in transportation service under section 6(g) of the Shipping Act. The Commission’s action also imposes reporting requirements on the Agreement parties to assist the Commission in its ongoing, close monitoring of the agreement.
“The Commission’s action on the 2M Agreement is based on the comprehensive, competitive analysis conducted by the FMC staff, and takes into account responses from the Agreement parties to staff and Commissioner questions raised during the 45-day review period, as well as comments received from the European Shippers Council, the only public comment received on the proposed Agreement. I am confident that the reporting requirements will ensure that the Commission will have timely and relevant information to monitor activity under the agreement, and will enable the FMC to act quickly should it be necessary,” said Chairman Cordero.
The Federal Maritime Commission is the federal agency responsible for regulating the nation’s international ocean transportation for the benefit of exporters, importers, and the American consumer. The FMC’s mission is to foster a fair, efficient, and reliable international ocean transportation system while protecting the public from unfair and deceptive practices.