FMC Directs More In-Depth Review of U.S.-Oceania Trades
July 25, 2008
CONTACT: Florence A. Carr, Director, Bureau of Trade Analysis, (202) 523-5796
The Federal Maritime Commission announced today that it has concluded review of an amendment to the U.S. Pacific Coast–Oceania Agreement, FMC Agreement No. 011741-012 ("Oceania Agreement"), covering the trade between the U.S. Pacific Coast and Australia, New Zealand, and the Pacific Islands. The Amendment adds CMA CGM S.A. and ANL Singapore PTE, Ltd., as a single party to the Oceania Agreement, revises vessel operations, and makes other changes to this vessel sharing agreement.
The Commission determined not to delay the effectiveness of the Amendment, with Commissioner Brennan dissenting from this decision. Collectively the Commission expressed serious concerns regarding the substantial market power that the parties may exercise through the combination of their ability to restrain capacity under this Amendment and their corresponding authority to agree upon rates through participation in related rate discussion agreements already operational in the trades. To address these concerns, the Commission directed staff to undertake a more comprehensive review of rates, practices and competitive conditions in the U.S.-Oceania trades, and has authorized the issuance of Section 15 Orders to vessel-operating common carriers serving these trades.
Electronic copies of Agreements on file with the Commission can be accessed through the Commission's website at http://www2.fmc.gov/agreements/.
Press Contact: Karen V. Gregory (202) 523-5725; e-mail: email@example.com