G6 Grouping Gets Ratification from US Authorities
US – The G6 Alliance has received the go-ahead from the US Federal Maritime Commission (FMC) to expand its current geographic scope to allow its members: APL, Hapag Lloyd, Hyundiai Merchant Marine, MOL, NYK, andOOCL, operational cooperation in the trades between the Far East and the US West Coast, and between North Europe and all US coasts. This decision, which will allow the Agreement to become effective as scheduled on April 4, comes off the back of the FMC’s recent ratification of the P3 Alliance between the three largest container shipping lines, with the commission coming to the same conclusion as it did then, that the agreement is not likely to produce an unreasonable increase in transportation cost or an unreasonable reduction in freight transportation services.
The amended G6 Alliance Agreement provides for an additional 17 services. The parties intend to jointly coordinate the operation and sharing of space on about 180 - 220 container vessels with a maximum capacity of 14,000 TEUs. Chairman Mario Cordero said:
"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. 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."
The current G6 activities are monitored by the FMC, and the expansion of services will likewise be closely watched in order to provide an early warning system to detect a reduction in competition. FMC’s monitoring activities include; submission of information by each party regarding capacity, regularly scheduled reports concerning cargo loaded and number of sailings and monitoring of rates in connection with Agreement activities.
Earlier this year, the G6 Alliance members released its proposed port rotation, which is as follows:
Trans-Atlantic (5 services)
AX1 (Atlantic Express 1) UK port* - Rotterdam - Hamburg - Le Havre - New York - Norfolk - UK port* *terminal to be confirmed
AX2 (Atlantic Express 2) Southampton - Antwerp - Bremerhaven - Le Havre - Veracruz - Altamira - Houston - New Orleans – Charleston - Southampton
AX3 (Atlantic Express 3) Antwerp - Bremerhaven - Southampton - Charleston - Port Everglades - Houston - Savannah - Norfolk - Antwerp
PA1 (Pacific Atlantic 1) Shanghai* - Pusan - Kobe - Nagoya - Tokyo - Tacoma - Vancouver - Oakland - Los Angeles - Balboa** - Panama Canal - Manzanillo, Panama - Savannah - Norfolk - New York - Halifax - Southampton - Antwerp - Hamburg - Rotterdam - Halifax - New York - Norfolk -Savannah - Manzanillo, Panama - Panama Canal - Los Angeles - Oakland - Yokohama - Shanghai
*terminal to be confirmed ** to be confirmed
PA2 (Pacific Atlantic 2) Kaohsiung - Pusan - Kobe - Tokyo - Balboa - Panama Canal - Manzanillo, Panama - Miami - Jacksonville - Savannah - Charleston - New York - Rotterdam - Bremerhaven - UK port* - Le Havre - New York - Norfolk - Charleston - Manzanillo, Panama - Panama Canal - Balboa - Los Angeles - Oakland - Tokyo - Kobe - Kaohsiung
*terminal to be confirmed
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