The US Federal Maritime Commission (FMC) has postponed the implementation of the Gemini Cooperation Agreement between Maersk and Hapag-Lloyd, two of the world's largest container shipping firms. This decision was made as the FMC requires further details to assess the agreement's competitive impacts accurately. The agreement, filed on May 31, 2024, aimed to enable vessel sharing among the companies for trades between the United States, Asia, the Middle East, and Europe. However, the FMC's request for additional information (RFAI) has halted the agreement's activation, which was initially scheduled for July 15, 2024.
The RFAI process is a tool used by the FMC to gather more comprehensive data on agreements when the initial submission is found lacking in detail. This step is crucial for the FMC to conduct a thorough analysis of how such agreements might affect market competition. The specifics of the RFAI are confidential, focusing on commercially sensitive information. The reconsideration of the Gemini Cooperation Agreement will only proceed once the FMC deems the response to the RFAI satisfactory. Furthermore, a 15-day public comment period will be initiated following the RFAI's announcement in the Federal Register.
Source: bairdmaritime.com
Photo source: Hapag-Lloyd