FMC policy to allow scrutiny of alliance capacity issues

Time:2011-01-17 Browse:36 Author:RISINGSUN

THE US Federal Maritime Commission is to scrutinise New World, Grand and CKYH alliances on capacity and schedule planning on a monthly basis to avoid supply chain disruptions of the last two years.

The shipping alliances have requested to authorise multiple US trade lanes which would allow capacity rationalisation and vessel/space constraints to shippers on any trade route.


The ruling effective January 24, to be reviewed in two years, will ask that the alliances provide agendas for meetings by senior-level committees and notice of capacity changes of more than five per cent.


This will avoid the scenario of supply breakdown in early 2010 when "increases in import volumes collided with previous vessel capacity reductions," said the FMC in an American Shipper report.