FMC: Alliances are good for US trade

Marine terminal alliances and carrier ones like the recently formed THE Alliance and OCEAN Alliance can be very beneficial for US exporters, importers and consumers, the Federal Maritime Commission (FMC)’s acting chairman has claimed.

According to Michael Khouri, evidence shows that members of the alliances obtain efficiencies and cost-savings which have been historically passed on to domestic consumers, particularly if there is a healthy competition among vessel operators.

While testifying at a hearing on maritime transportation, Khouri said that the commission’s alliance monitoring programmes showed that the individual ocean carriers part of the alliances are continuing to “independently and vigorously” compete on pricing.