The US Federal Maritime Commission (FMC) has requested additional information on the Geminis Cooperation agreement between Maersk and Hapag-Lloyd, which was scheduled to start on 15 July. The request is motivated by the need to assess the "potential competitive impacts of the agreement".
At the end of May, the two shipping lines filed a cooperation agreement with the FMC. Under the rules, agreements become effective 45 days after they are filed, unless the Commission issues a Request for Further Information (RFAI), as it has done in this case. In a 12 July statement, the FMC said: "The Commission has determined that the Geminis Cooperation Agreement, as filed, lacks sufficient detail to allow for a full analysis of its potential competitive impacts".
The FMC has further explained that the information requested in an RFAI is commercially sensitive and is not published. The reconsideration of the agreement will not begin until the Commission receives a fully compliant response to its request. The Commission has 45 days from the time it determines that the responses to the RFAI are complete to review the settlement for competitive and legal concerns before it becomes effective.
The cooperation agreement presented by Maersk and Hapag-Lloyd is designed to reduce costs by cooperating on services between various routes: Asia and the Middle East to the US Pacific Coast; Asia and the Middle East to the US Atlantic and Gulf Coast; and Europe to the US Atlantic and Gulf Coast. As proposed, the agreement is broad in scope and provides that "vessels contributed by the Parties shall, to the extent practicable, be deployed on routes where all vessels are provided by a single Party. Each Party may substitute or replace vessels within or between Agreement services, subject to such standards and criteria as the Parties may establish from time to time".
In June, the FMC issued requests for comments, which are being kept confidential, on the Geminis agreement. These comments seek information on the cooperation between the two carriers and its potential impacts on competition.
The FMC´s review and request for additional information reflect the importance of carefully evaluating any agreement that may significantly affect competition in the maritime market. The FMC´s determination to obtain precise details before allowing the agreement to go into effect underscores its commitment to effective regulation and the promotion of fair competition.
News and image obtained: "El Estrecho Digital"
