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Commissioner William P. Doyle votes to request additional information from G6 parties

January 15, 2014

Contact: David J. Tubman, Jr., Counsel to Commissioner Doyle

Citing consumer interests, U.S.-flag international fleet, small businesses, suppliers and third parties such as terminals, vendors and bunker operators, Doyle submits additional questions to the G6 parties.

Federal Maritime Commissioner William P. Doyle voted to approve a request for additional information from the filing parties to the G6 Alliance Agreement. Now approved by a vote of the Commission, this request has stopped the 45-day regulatory waiting period. A new 45-day period will begin after the parties have submitted responses to the request for additional information.

On December 2, 2013, the G6 parties filed an Amendment with the Commission to extend their cooperation to all major east-west trades including those between Asia and the U.S. West Coast, and between Europe and the U.S. East Coast. The G6 parties consist of American President Lines, Ltd. (APL), Hapag-Lloyd, Hyundai Merchant Marine Company (HMM), Mitsui O.S.K. Lines, Ltd. (MOL), Nippon Yusen Kaisha (NYK), and Orient Overseas Container Line (OOCL).

Currently, the G6 Agreement authorizes the parties to share vessel space with each other and also enter into cooperative working arrangements in Asia-U.S. East Coast trade. Their Amendment would extend their authorization to encompass the major east-west trades, including that between Asia and the U.S. West Coast, and between Northern Europe/Mediterranean and all U.S. coasts.

"I have reviewed the proposed G6 Amendment and agree with the questions proposed by the Commission," stated Commissioner Doyle. He continued, "I also submitted questions related to the impact this Amendment would have on consumers, the U.S.-flag international fleet, small businesses and third party interests such as terminals, vendors and bunker suppliers." Doyle finished, "I trust that the G6 parties will thoroughly address all the questions posed in the Commission’s request for additional information."

For reference and comparison: The proposed G6 Amendment for its new global network anticipates 180 – 220 vessels with a maximum capacity of 14,000 twenty-foot equivalent units (TEUs). The recently filed P3Network Vessel Sharing Agreement (VSA) proposes an initial deployment across all U.S. trades with an annual capacity of 130 vessels that range between 4,000 TEUs and 12,250 TEUs. The P3 VSA proposes to eventually expand to a maximum of 180 vessels of up to 19,200 TEUs.

Pursuant to regulatory statute, agreements filed with the Commission become effective after 45 days, but the Commission may request additional information and documents from the filing parties necessary to complete the required statutory review. Upon receipt of complete and adequate responses to the request for additional information, a new 45-day period begins.