Just days before it was scheduled to come into effect (December 12), the Premier Alliance Agreement is facing further scrutiny from the Federal Maritime Commission (FMC).
The organisation says it needs more information to determine the potential competitive impacts of the global operational alliance of the three container shipping companies that make up the alliance.
HMM, Ocean Network Express (ONE), and the Yang Ming Joint Service Agreement (Yang Ming) filed the Premier Alliance Agreement at the Commission on October 28.
The agreement authorises the three entities to share vessels; charter or exchange vessel space; discuss and agree on the size, number, and operational characteristics of vessels operated under the agreement; and engage in other related activities on a global scale. Agreements become effective 45 days after filing unless the Commission issues a Request for Additional Information (RFAI) as it is doing here.
The Commission uses the RFAI process to obtain documents and verifiable information necessary to achieve clarity on matters that were not addressed by the filing parties or where insufficient information was provided in the originally filed agreement. It has determined that the Premier Alliance Agreement as submitted lacks sufficient detail to allow for a complete analysis of potential competitive impacts and whether the agreement fully complies with all statutory requirements.
Information sought as part of an RFAI is commercially sensitive and is not publicly published. Reconsideration of the agreement will not commence until the Commission has received a fully compliant response to its inquiry.
The Commission has 45 days from when it determines responses to the RFAI are deemed complete to review the agreement for competitive and legal concerns before it becomes effective.
A 15-day public comment period will open once public notice of the RFAI is published in the Federal Register this week.
The Premier Alliance partnership will focus on major east-west trade routes, including Asia to North America and Europe.
