Date: December 8, 2024

The Federal Maritime Commission (FMC) has announced a deferral in approving the new alliance proposed by Ocean Network Express (ONE), Hyundai Merchant Marine (HMM), and Yang Ming. The alliance, dubbed the Premier Alliance, has raised significant interest within the shipping industry due to its potential competitive implications. Below are the key details of the situation.

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Key Highlights

1. FMC Decision

• Date of Announcement: December 6, 2024
• Action: Approval deferred pending additional information.

2. Application Timeline

• Filing Date: October 28, 2024
• Automatic Approval Deadline: December 12, 2024 (now deferred).

3. Need for Additional Information

The FMC requires a deeper analysis to assess the competitive impact of the Premier Alliance. Initial filings lacked adequate detail for thorough evaluation.

4. Alliance Details

• Activities:
  • Vessel sharing
  • Slot exchange agreements
  • Joint decision-making on operational characteristics of vessels
• Planned Operations:
  • Scheduled to launch in February 2025
  • 24 services planned on east-west trade routes.

5. Regulatory Context

This deferral mirrors earlier scrutiny of the Maersk-Hapag-Lloyd Gemini Cooperation, which faced similar delays in 2024 due to competitive concerns.

6. Industry Concerns

Complaints about concentrated power among major carrier alliances have intensified, spurring calls for reforms to maintain fair competition in the shipping industry.

7. Next Steps

• Information Review: FMC awaits additional data from the alliance parties.
• Timeline for Final Decision: After receiving the requested details, the FMC will have 45 days to complete its review.

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Key Data Table

Aspect	Details
Alliance Name	Premier Alliance
Proposing Parties	ONE, HMM, Yang Ming
Initial Filing Date	October 28, 2024
Planned Launch	February 2025
Services Proposed	24 services on east-west trade routes
FMC Decision Timeline	Additional 45 days after receiving requested information
Similar Precedents	Maersk-Hapag-Lloyd Gemini Cooperation (2024)
Regulatory Concerns	Competitive impact, power concentration, alliance scrutiny

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Industry Implications

The shipping sector continues to navigate complexities as regulatory bodies like the FMC scrutinize collaborative efforts among carriers. With the rise of mega-alliances, concerns about monopolistic practices and diminished competition remain at the forefront. The Premier Alliance represents a critical case in balancing operational efficiency with market fairness.