Freight News, Sea

UPDATED: FMC delays P3 plan

[ December 5, 2013   //   Chris ]

The US Federal Maritime Commission asked for additional information about the proposed P3 shipping alliance on 5 December. It said the move would delay introduction of the proposed agreement – should mit ultimately be approved because a new 45-day regulatory review period will begin.

It followed a request by the Global Shippers’ Forum (GSF), whose secretary general, Chris Welsh – commented: “GSF welcomes the vote by FMC Commissioners so that they can obtain extra information following concerns raised by GSF, and welcomes the space created by a new 45 day regulatory review period starting from next week to scrutinize and thoroughly evaluate the proposed P3 Agreement. When shippers still lack basic information from the P3 about sailing schedules and how services will affect production and distribution, it is absolutely necessary for extra evaluation time for the carriers to respond to questions submitted by GSF regarding the competitive impact of the P3.”

Mr Welsh added: “It is clear that the P3 goes beyond a normal vessel sharing agreement in terms of its scale and scope and operational arrangements. The ‘game changing’ nature of the P3 is underlined by the response by the G6 alliance and others. We are potentially looking at a fundamental change in the structure of the global liner market and the wider competitive environment for shippers.”

Tags: Federal Maritime Commission, FMC, P3