The U.S. Commissioner William P. Doyle voted for the Federal Maritime Commission to take no further action on the Hanjin/United Arab Shipping Company (UASC)/CMA CGM/China Shipping Container Lines (CSCL) Vessel Sharing and Slot Charter Agreement which became effective on January 2, 2015.
Commissioner Doyle said that the newly proposed agreement is an extension of the Ocean Three Alliance launched by UASC, CMA CGM and CSCL and approved by FMC in October 2014 because it ”met the low market share threshold exemption pursuant to FMC regulations.”
Doyle also remarked that the actual service deployed under this agreement is based on ”a 2009 agreement between UASC and Hanjin, with some limited port and carrier adjustments and does not involve service under the authority of the Ocean Three Agreement.”
”The vessel sharing and slot charter Agreement contains no limitations on the parties’ ability to introduce additional capacity or provide transportation on other vessels in the trade. At this time it appears that the Agreement is not likely, through a reduction in competition, to result in an unreasonable decrease in transportation service or an unreasonable increase in transportation costs,” said Commissioner Doyle.