Maersk-MSC tie up could begin in January after FMC approval

The proposed 2M alliance of Maersk Line and Mediterranean Shipping Company (MSC) has been granted regulatory approval by the US Federal Maritime Commission (FMC), meaning the vessel sharing agreement may begin as early as January 2015.

“The Commission’s decision is based on a determination that the agreement is not likely at this time, by a reduction in competition, to produce an unreasonable increase in transportation cost or an unreasonable reduction in transportation service under section 6(g) of the Shipping Act. The Commission’s action also imposes reporting requirements on the Agreement parties to assist the Commission in its ongoing, close monitoring of the agreement” the FMC said in its statement.

“… The US FMC [has] announced that it will not delay the entry into effect of the Agreement. The US was the only remaining jurisdiction where the Parties had to obtain formal approval. Thus, the Parties can now implement the Agreement as planned,” said Maersk.