US' FMC delays Maersk & Hapag-Lloyd alliance, requests more info

A global operational alliance between two of the leading container shipping companies, Maersk and Hapag-Lloyd AG and Hapag-Lloyd, LLC, will not go into effect this week as planned, as US’ Federal Maritime Commission (FMC) has requested additional information to assess the potential competitive impacts of the arrangement.

The Gemini Cooperation Agreement was filed by the companies at the commission on May 31, 2024. The agreement aims to allow these companies to share vessels in trades between the US and Asia, the Middle East, and Europe. Typically, agreements become effective 45 days after filing unless the commission issues a request for additional information (RFAI), as it has in this case.

The RFAI process is utilised by the commission to clarify matters that were not addressed or where insufficient information was provided in the original filing. The commission determined that the Gemini Cooperation Agreement lacked sufficient detail for a thorough analysis of its potential competitive impacts, FMC said in a news release.

Re-consideration of the agreement will only commence once the commission receives a fully compliant response to its inquiry. The commission then has 45 days from the determination of complete responses to review the agreement for competitive and legal concerns before it can become effective.

Fibre2Fashion News Desk (DP)