FMC Delays Approval of Ocean Network Express Alliance Amid Competition Concerns

The Federal Maritime Commission (FMC) has announced that it will not immediately approve the new alliance planned by Ocean Network Express (ONE), HMM, and Yang Ming to replace their current alliance, which also includes Hapag-Lloyd. The FMC stated that it requires more time and information to authorize the alliance, marking the second time this year that such a decision has been delayed. The first delay occurred when Maersk and Hapag-Lloyd sought approval for the Gemini Cooperation.

The three carriers submitted an application on October 28 to form the Premier Alliance as a replacement for their previous working arrangement, The Alliance. The FMC highlighted that if they had not taken this step, the agreement would have automatically gone into effect on December 12. The FMC explained that more information is needed to assess how the agreement will impact competition, stating that the original submission lacked sufficient information and did not fully comply with statutory requirements.

The new alliance will cover vessel sharing, vessel slot exchange, and discussions on vessel size, quantity, and operational features. Following Hapag-Lloyd’s departure from The Alliance for a partnership with Maersk, the three carriers decided to strengthen their working relationship, including a separate arrangement with MSC Mediterranean Shipping Company. The Premier Alliance plans to scale up operations in February 2025, with ambitions to offer 24 services on east-west routes for a five-year period. The FMC will make a decision on the approval of the agreement after receiving the requested additional information within 45 days.

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