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EU/US: EU shippers want US to block new partnership

By  |  September 23, 2014
EU/US: EU shippers want US to block new partnership

A group of EU shippers has reportedly sent a letter to US officials urging them to block the proposed partnership between the world’s two largest container shipping lines.

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    According to reports, the European Shippers Council sent a letter to the US Federal Maritime Commission last week claiming that the partnership between Maersk Line and Mediterranean Shipping Co will lead to negative effects on global rates. “Accepting that operators can ‘blank sailing’ can clearly be seen as market manipulation to restore freight rates if needed (by playing on the supply side),” the letter wrote.

    But reports say despite the concerns, the letter is unlikely to cause the US agency to block the deal. The companies do not have plans to coordinate prices.

    Still, officials are concerned over a certain clause in the partnership agreement that would reportedly allow the two companies to hike surcharges that possibly coordinate prices as a consequence.

    Full content: JOC.com

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