Two agreements related to the west coast and trade flows between the United States and Asia were addressed today by the Federal Maritime Commission during a regularly scheduled meeting, as were recent developments regarding government linked ocean carriers.
The Commission was briefed in open session on updates to the list of “Controlled Carriers”, those ocean common carriers that are majority owned or controlled by foreign governments. The Commission is charged with monitoring foreign government control of ocean shipping lines. The FMC maintains a list of these companies which is periodically updated as circumstances warrant.
Recent consolidation in the container shipping industry has resulted in four notable changes among Controlled Carriers:
- China Shipping was integrated into COSCO Container Lines Company, Limited, which then changed its name to COSCO SHIPPING Lines Co, Ltd.
- American President Lines, Ltd. and APL Co., Pte. is being removed from this list because it is now wholly owned by CMA CGM S.A. and no state entity is a majority owner
- United Arab Shipping Company Ltd. (formerly United Arab Shipping Company (S.A.G.) is being removed from this list because it is now wholly owned by Hapag-Lloyd and no state entity is a majority owner
- Hainan P O Shipping Co., Ltd. is being removed from the list because it no longer operates in the U.S.-Foreign trades
COSCO SHIPPING Lines Co., Ltd. and CNAN Nord SPA remain on the Controlled Carrier List.
The Commission went to closed session to receive confidential reports on the Trans-Pacific Stabilization Agreement (TSA) and the West Coast Marine Terminal Operators Agreement (WCMTOA). The FMC reviews agreements under the Shipping Act to assure that participating parties do not engage in anticompetitive behavior that results in unreasonable increases in rates or decreases in service, or other prohibited acts.
The Commission’s next meeting is scheduled for September.
The Federal Maritime Commission is responsible for regulating the Nation’s international ocean transportation for the benefit of exporters, importers, and the American consumer. The Commission’s mission is to foster a fair, efficient, and reliable international ocean transportation system while protecting the public from unfair and deceptive