Federal Maritime Commission Delays Global Shipping Alliance Agreement for Further Review

A global operational alliance between two of the world’s largest container shipping companies, Maersk A/S and Hapag-Lloyd AG (along with Hapag-Lloyd USA, LLC), will not go into effect next week as initially planned. The Federal Maritime Commission (FMC) has issued a Request for Additional Information (RFAI) to determine the potential competitive impacts of the arrangement.

Filed on May 31, 2024, the Gemini Cooperation Agreement (No. 201429) proposed that these companies share vessels in trades between the United States and Asia, the Middle East, and Europe. Under normal circumstances, such agreements become effective 45 days after filing. However, the FMC’s issuance of the RFAI has paused this timeline.

The RFAI process allows the FMC to clarify any matters not addressed or insufficiently detailed in the original agreement filing. The Commission found the Gemini Cooperation Agreement lacking in sufficient detail to fully analyze its potential competitive impacts.

The information requested in the RFAI is commercially sensitive and will not be publicly disclosed. The review of the agreement will not proceed until the FMC receives a fully compliant response. Once complete responses are submitted, the Commission has 45 days to evaluate the agreement for competitive and legal concerns.

Additionally, a 15-day public comment period will open following the publication of the RFAI notice in the Federal Register next week.

Originally, the Gemini Cooperation Agreement was set to take effect on Monday, July 15, 2024. This delay allows the FMC to ensure thorough examination and compliance with regulatory standards before moving forward.