FMC APPROVES GEMINI COOPERATION
On 9 September, the US Federal Maritime Commission (FMC) announced that the Gemini Cooperation Agreement between Maersk and Hapag-Lloyd can take effect. The agreement was filed to the FMC on 31st May 2024, but the Commission required further information to assess possible anti-competitive effects.
In its statement, the FMC noted that it had reviewed the cooperation agreement, “within the statutory timeframe” and had decided not to seek an injunction against the deal”, the only tool at its disposal. Nevertheless, FMC chair Daniel Maffei stated that he had “questions and concerns about whether the Gemini Cooperation Agreement filed with the FMC has, or will, result in anti-competitive consequences that violate the Shipping Act”. The FMC added that the Gemini alliance will be subject to extensive monitoring and continuous oversight, following the adoption of a policy statement advising the Commission to use existing administrative investigatory authorities (gathering evidence via subpoenaing witnesses and documents, holding hearings…) to more rigorously review filed agreements.
CLECAT appreciates the FMC’s thorough assessment of the anti-competitive effects of ocean carrier alliances, utilizing all the tools at its disposal. We now call on other jurisdictions and most notably to the European Commission to apply an effective, continuous and rigorous oversight of such alliances, enhancing the accountability of shipping lines and trust between the stakeholders.
Source: FMC