FMC ruling stalls launch of box ship Premier Alliance

The Federal Maritime Commission (FMC) on Friday issued a ruling that put on hold plans by containership operators Ocean Network Express (ONE), HMM and Yang Ming to launch the Premier Alliance this week. The FMC announced its decision the same day that ONE released details of the first sailings of the new network. The three Asian Lines drew up their plans for the Premier Alliance following the departure of Hapag-Lloyd from its predecessor THE Alliance to join Maersk in the Gemini Alliance.

The FMC says more information is needed by to determine the potential competitive impacts of the arrangement.

“HMM Co., Ltd. (HMM), Ocean Network Express Ptd. Ltd. (ONE), and the Yang Ming Joint Service Agreement (Yang Ming) filed the Premier Alliance Agreement (FMC Agreement No. 201435) at the Commission on October 28, 2024,” says the FMC. “The agreement authorizes 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. The Commission 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. Re-consideration 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 next week.

“The Premier Alliance Agreement would have gone into effect Thursday December 12, 2024, absent this action by the Commission.”