FMC okays G6 expansion amendment, sees no violation of US Shipping Act
THE US Federal Maritime Commission (FMC) has told the expanded G6 Alliance that its proposed amendment to enlarge its size and scope has passed muster and there for it is entitled to ply trades between the Far East and Europe to American ports.
Unlike the vote on the giant P3, banding the Big Three - Maersk, MSC and CMA CGM into a mega alliance, the vote was unanimous for the G6, made up of OOCL, APL, Hapag-Lloyd, Hyundai, MOL and NYK.
The FMC said the G6 operational alliance was not likely "at this time" to cause as reduction in competition or service, under the US Shipping Act, reported Lloyd's List.
Said OOCL trades chief Stephen Ng: "We are glad about the unanimous decision from FMC to allow the expansion of the G6 scope to take effect and we will work on implementation of the new agreement which will provide better services in terms of coverage and frequency as well as improved cost efficiency and enhanced environmental benefits."
FMC chairman Mario Cordero said the G6 would "increase available capacity in the expanded geographic scope, and has the potential to generate operational efficiencies and positive environmental benefits".
The G6's capacity increase will provide for an additional 17 services and allow members to co-ordinate the operation and space sharing on 180 to 220 ships with 14,000 TEU between them.
