Friday, April 4, 2014

G6 Alliance Passes Regulatory Review

By Mark Edward Nero

The Federal Maritime Commission said April 2 that it has concluded a comprehensive review of the proposed amendment to the G6 Alliance Agreement, clearing the way for the agreement to move forward this week as planned.

The agreement between American President Lines, Hapag Lloyd AG/USA, Hyundai Merchant Marine, Mitsui OSK Lines, Nippon Yusen Kaisha, and Orient Overseas Container Line expands the current geographic scope to allow G6 operational cooperation in the trades between the Far East and the US West Coast, and between North Europe and all US coasts.

The agreement authorizes the involved parties to charter and exchange space on one another’s vessels and to coordinate and cooperate transportation services and operations in order to improve efficiency and save costs.

The Commission’s unanimous decision allowed the agreement to become effective as scheduled on April 4.

The Commission said its decision was based on a determination that the agreement isn’t likely, via a reduction in competition, to produce an unreasonable increase in transportation cost or an unreasonable reduction in transportation service under the Shipping Act.

“The Commission’s action on the G6 Alliance is based on an extensive, competitive analysis conducted by the Commission’s staff and comments received by shippers and other industry participants,” Maritime Commission Chair Mario Cordero said, while maintaining that the Commission will continue to review the competitive impact of global alliances.

“This alliance will considerably increase available capacity in the expanded geographic scope, and has the potential to generate operational efficiencies and positive environmental benefits,” Cordero said.
The text of the agreement can be read at