{"id":15267,"date":"2020-04-30T12:51:26","date_gmt":"2020-04-30T12:51:26","guid":{"rendered":"http:\/\/www.felana.com.mx\/eng\/reauthorizing-the-fmc-an-inevitable-move-in-the-age-of-alliances\/"},"modified":"2020-04-30T12:51:26","modified_gmt":"2020-04-30T12:51:26","slug":"reauthorizing-the-fmc-an-inevitable-move-in-the-age-of-alliances","status":"publish","type":"post","link":"https:\/\/www.felana.com.mx\/eng\/reauthorizing-the-fmc-an-inevitable-move-in-the-age-of-alliances\/","title":{"rendered":"Reauthorizing the FMC: An Inevitable Move in the Age of Alliances"},"content":{"rendered":"<h4><span style=\"color: #ff6600;\">In early December 2018, the U.S. President signed into legislation a bill reauthorizing the Federal Maritime Commission (FMC).<\/span><\/h4>\n<p>Impending changes to the FMC\u2019s authority were inevitable, considering the last five years of major carrier consolidations in the shipping sector.<\/p>\n<p>The shipping industry saw the catalyst of carrier consolidation in 2014 when MSC, Maersk, and CMA CGM tried to form the P3 alliance but were denied Chinese approval. Since then, we have seen the forming of new alliances, new carrier joint ventures, and the devastating sinking of prior giants such as Hanjin. After half a decade of reconfiguration, the shipping industry remains with three major alliances that, according to Alphaliner, collectively represent 79%\u00a0of the world\u2019s maritime market. 2M, Ocean Alliance, and The Alliance have left only 21% (only 19% percent if we consider 2M + HMM) of the market for smaller shipping companies, which raises concerns over anti-competitive agendas. Thus, we have the reauthorization of the FMC.<\/p>\n<p>As noted by FreightWaves.com, \u201cthe legislation included some of the biggest revisions to shipping statutes in 35 years\u201d which, given the growth we\u2019ve faced within the last five years alone, is a necessary adjustment. These amendments to the FMC Authorization Act of 2017 concentrate chiefly on anti-trust issues clearly connected to rapid carrier consolidation and the creation of alliances, mergers, and acquisitions.<\/p>\n<h4><span style=\"color: #ff6600;\">Below is an infographic summarizing shipping carrier alliances, as of April 2018.<\/span><\/h4>\n<div id=\"attachment_12936\" style=\"width: 899px\" class=\"wp-caption alignnone\"><img aria-describedby=\"caption-attachment-12936\" class=\"wp-image-12936\" data-cfsrc=\"https:\/\/073bddbe7aa062defd37fde3-cwzdvdpfea.netdna-ssl.com\/wp-content\/uploads\/2019\/01\/reauthorization-of-the-fmc-mts-2019.png\" alt=\"\" width=\"889\" height=\"451\"   style=\"display:none;visibility:hidden;\" \/><noscript><img loading=\"lazy\" aria-describedby=\"caption-attachment-12936\" class=\"wp-image-12936\" src=\"https:\/\/073bddbe7aa062defd37fde3-cwzdvdpfea.netdna-ssl.com\/wp-content\/uploads\/2019\/01\/reauthorization-of-the-fmc-mts-2019.png\" alt=\"\" width=\"889\" height=\"451\"   \/><\/noscript><\/p>\n<p id=\"caption-attachment-12936\" class=\"wp-caption-text\">Via Uniserve.co.uk<\/p>\n<\/div>\n<h4><span style=\"color: #ff6600;\">Once the re-authorization bill goes into full effect, it will allow the FMC to investigate anti-competitive actions among carriers.<\/span><\/h4>\n<p>This will, in turn, protect entities such as U.S.-based terminal operators, harbor pilots, tugboat operators, and equipment suppliers from exaggerative carrier pricing that could hinder funds towards much-needed infrastructure and technological developments.<\/p>\n<p>It is the first time the FMC considers other service providers when regulating tariffs and costs, and it comes at an interesting time. Only recently, Maersk, ZIM, HMM, and SM Lines have announced the implementation of street-turn fees ($30, $40, $50, and $75 per container, respectively). The controversial announcement of the new fees has received negative <a href=\"https:\/\/www.morethanshipping.com\/street-turn-fees-for-u-s-exports-is-it-fair-to-charge-these-fees\/\" target=\"_blank\" rel=\"noopener noreferrer\">feedback<\/a> from truckers and shippers alike. Street-turns are more efficient, better for the environment, and do not create a cost-burden for ocean carriers \u2013 so the additional costs appear to be merely a profit push.<\/p>\n<h4><span style=\"color: #ff6600;\">The new legislation was not able to be implemented until the government shutdown ended, last Friday.<\/span><\/h4>\n<p>The FMC was completely closed during the shutdown. They did not respond to any inquiries or complaints and all tariff approvals had to wait until the shutdown ended. Carriers, NVOCCs, and all affected entities must be sure to submit all filings, changes, or renewals once the FMC resumes operations. And, once the FMC returns, we\u2019ll see the impact of the reauthorization bill.<\/p>\n<div class=\"essb_links essb_counters essb_displayed_bottom essb_share essb_template_metro-retina essb_479837237 print-no\" id=\"essb_displayed_bottom_479837237\" data-essb-postid=\"12930\" data-essb-position=\"bottom\" data-essb-button-style=\"button\" data-essb-template=\"metro-retina\" data-essb-counter-pos=\"insidebeforename\" data-essb-url=\"https:\/\/www.morethanshipping.com\/reauthorizing-the-fmc-an-inevitable-move-in-the-age-of-alliances\/\" data-essb-fullurl=\"https:\/\/www.morethanshipping.com\/reauthorizing-the-fmc-an-inevitable-move-in-the-age-of-alliances\/\" data-essb-instance=\"479837237\">\n<ul class=\"essb_links_list\">\n<li class=\"essb_item essb_totalcount_item\" data-counter-pos=\"insidebeforename\"><span class=\"essb_totalcount essb_t_l_big\" title=\"\" data-shares-text=\"shares\"><span class=\"essb_t_nb\">28<span class=\"essb_t_nb_after\">shares<\/span><\/span><\/span><\/li>\n<li class=\"essb_item essb_link_facebook nolightbox\"> <a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fwww.morethanshipping.com%2Freauthorizing-the-fmc-an-inevitable-move-in-the-age-of-alliances%2F&#038;t=Reauthorizing+the+FMC%3A+An+Inevitable+Move+in+the+Age+of+Alliances\" title=\"Share on Facebook\" onclick=\"essb.window(&#39;https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fwww.morethanshipping.com%2Freauthorizing-the-fmc-an-inevitable-move-in-the-age-of-alliances%2F&#038;t=Reauthorizing+the+FMC%3A+An+Inevitable+Move+in+the+Age+of+Alliances&#39;,&#39;facebook&#39;,&#39;479837237&#39;); return false;\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" class=\"nolightbox\"><span class=\"essb_icon essb_icon_facebook\"><\/span><span class=\"essb_network_name\"><span class=\"essb_counter_insidebeforename\" data-cnt=\"15\" style=\"display: none;\" data-cnt-short=\"15\">15<\/span>Facebook<\/span><\/a><\/li>\n<li class=\"essb_item essb_link_linkedin nolightbox\"> <a href=\"https:\/\/www.linkedin.com\/shareArticle?mini=true&#038;ro=true&#038;trk=EasySocialShareButtons&#038;title=Reauthorizing+the+FMC%3A+An+Inevitable+Move+in+the+Age+of+Alliances&#038;url=https%3A%2F%2Fwww.morethanshipping.com%2Freauthorizing-the-fmc-an-inevitable-move-in-the-age-of-alliances%2F\" title=\"Share on LinkedIn\" onclick=\"essb.window(&#39;https:\/\/www.linkedin.com\/shareArticle?mini=true&#038;ro=true&#038;trk=EasySocialShareButtons&#038;title=Reauthorizing+the+FMC%3A+An+Inevitable+Move+in+the+Age+of+Alliances&#038;url=https%3A%2F%2Fwww.morethanshipping.com%2Freauthorizing-the-fmc-an-inevitable-move-in-the-age-of-alliances%2F&#39;,&#39;linkedin&#39;,&#39;479837237&#39;); return false;\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" class=\"nolightbox\"><span class=\"essb_icon essb_icon_linkedin\"><\/span><span class=\"essb_network_name\"><span class=\"essb_counter_insidebeforename\" data-cnt=\"11\" style=\"display: none;\" data-cnt-short=\"11\">11<\/span>LinkedIn<\/span><\/a><\/li>\n<li class=\"essb_item essb_link_twitter nolightbox\"> <a href=\"https:\/\/www.morethanshipping.com\/reauthorizing-the-fmc-an-inevitable-move-in-the-age-of-alliances\/#\" title=\"Share on Twitter\" onclick=\"essb.window(&#39;https:\/\/twitter.com\/intent\/tweet?text=Reauthorizing%20the%20FMC%3A%20An%20Inevitable%20Move%20in%20the%20Age%20of%20Alliances&#038;url=https:\/\/www.morethanshipping.com\/reauthorizing-the-fmc-an-inevitable-move-in-the-age-of-alliances\/&#038;counturl=https%3A%2F%2Fwww.morethanshipping.com%2Freauthorizing-the-fmc-an-inevitable-move-in-the-age-of-alliances%2F&#39;,&#39;twitter&#39;,&#39;479837237&#39;); return false;\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" class=\"nolightbox\"><span class=\"essb_icon essb_icon_twitter\"><\/span><span class=\"essb_network_name\"><span class=\"essb_counter_insidebeforename\" data-cnt=\"1\" style=\"display: none;\" data-cnt-short=\"1\">1<\/span>Twitter<\/span><\/a><\/li>\n<li class=\"essb_item essb_link_mail nolightbox\"> <a href=\"http:\/\/www.morethanshipping.com\/cdn-cgi\/l\/email-protection#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\" title=\"Share on Email\" onclick=\"essb.tracking_only('', 'mail', '479837237', true);\" target=\"_self\" rel=\"nofollow noopener noreferrer\" class=\"nolightbox\"><span class=\"essb_icon essb_icon_mail\"><\/span><span class=\"essb_network_name\"><span class=\"essb_counter_insidebeforename\" data-cnt=\"1\" style=\"display: none;\" data-cnt-short=\"1\">1<\/span>Email<\/span><\/a><\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In early December 2018, the U.S. President signed into legislation a bill reauthorizing the Federal Maritime Commission (FMC). Impending changes to the FMC\u2019s authority were inevitable, considering the last five years of major carrier consolidations in the shipping sector. The shipping industry saw the catalyst of carrier consolidation in 2014 when MSC, Maersk, and CMA [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15268,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[],"_links":{"self":[{"href":"https:\/\/www.felana.com.mx\/eng\/wp-json\/wp\/v2\/posts\/15267"}],"collection":[{"href":"https:\/\/www.felana.com.mx\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.felana.com.mx\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.felana.com.mx\/eng\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.felana.com.mx\/eng\/wp-json\/wp\/v2\/comments?post=15267"}],"version-history":[{"count":0,"href":"https:\/\/www.felana.com.mx\/eng\/wp-json\/wp\/v2\/posts\/15267\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.felana.com.mx\/eng\/wp-json\/wp\/v2\/media\/15268"}],"wp:attachment":[{"href":"https:\/\/www.felana.com.mx\/eng\/wp-json\/wp\/v2\/media?parent=15267"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.felana.com.mx\/eng\/wp-json\/wp\/v2\/categories?post=15267"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.felana.com.mx\/eng\/wp-json\/wp\/v2\/tags?post=15267"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}