Venable partner Ashley Craig was quoted in a January 7, 2014 Journal of Commerce article on the pending approval of the P3 shipping network which includes a vessel sharing alliance between Maersk Line, Mediterranean Shipping Co. and CMA CGM. The European Union and the U.S. Federal Maritime Commission (FMC) are expected to approve the alliance.
According to Craig, “The FMC likely will allow the proposed alliance… considering the agency hasn't sought an injunction against a VSA since it gained the authority to do so as part of the Shipping Act of 1984.”
Despite the expected approval, some argue that such an alliance should face a regulatory block due to the size of the alliance. “Instead of seeking an injunction against the P3, the more likely scenario is that the FMC will require the P3 carriers to provide more transparency for regulators and the shipping public as part of a back-and-forth with the carriers and the FMC prior to the agreement becoming effective,” said Craig.
According to Craig, “The FMC likely will allow the proposed alliance… considering the agency hasn't sought an injunction against a VSA since it gained the authority to do so as part of the Shipping Act of 1984.”
Despite the expected approval, some argue that such an alliance should face a regulatory block due to the size of the alliance. “Instead of seeking an injunction against the P3, the more likely scenario is that the FMC will require the P3 carriers to provide more transparency for regulators and the shipping public as part of a back-and-forth with the carriers and the FMC prior to the agreement becoming effective,” said Craig.