ESC flags up inconsistencies in alliance regulatory proposals

© Khunaspix Dreamstime.

The European Shippers’ Council has released a copy of a letter sent to the US Federal Maritime Commission in which it dissects the submission by the CKYHE alliance to the regulator and expresses its concern at some of the articles contained within the proposed agreement. Of particular note is article 5.4.1 of the agreement whereby the parties intend to have a “common negotiation” with ports and service providers, which the ESC contends would empower the CKYHE alliance with a “dominant position” over these suppliers. Interestingly a similar article in the agreement of the approved 2M, and its predecessor P3, was disallowed by the FMC for the very reasons given by the ESC. Its original press release is here.

Meanwhile, in another regulatory development, the FMC said yesterday that it was “stopping the clock” on the application of the Transpacific Stabilization Group’s amendment to permanently include the westbound transpacific trade as part of the TSA. It is a matter of conjecture whether this show of teeth by the FMC has any connection with the TSA members’ attempt this week to introduce a congestion surcharge foe US west coast shipments.