US halts Premier Alliance, requests additional information

The Federal Maritime Commission (FMC) has paused the new shipping alliance between Ocean Network Express (ONE), HMM, and Yang Ming Marine Transportation, pending further information before approval.

The Premier Alliance Agreement would have gone into effect Thursday, December 12, 2024, absent this action by the Commission and was set for commercial launch in February 2025.

"A global operational alliance of three container shipping companies will not go into effect next week because more information is needed by the Federal Maritime Commission to determine the potential competitive impacts of the arrangement," the FMC, in charge of regulating the US international ocean transportation system.

HMM, ONE and Yang Ming filed the Premier Alliance Agreement at the Commission on October 28, 2024. It would have gone into effect after 45 days unless, as is the case, the commission makes a Request for Additional Information (RFAI).

The agreement authorizes the three entities to share vessels, charter or exchange vessel space, discuss and agree on the size, number, and operational characteristics of vessels operating under the agreement, and engage in other related activities on a global scale.

The FMC noted that it uses the RFAI process to obtain documents and verifiable information necessary to achieve clarity on matters that the filing parties did not address or where insufficient information was provided in the originally filed agreement.

"The Commission has determined that the Premier Alliance Agreement as submitted lacks sufficient detail to allow for a complete analysis of potential competitive impacts and whether the agreement fully complies with all statutory requirements," FMC said.

It added that information sought as part of an RFAI is commercially sensitive and is not publicly published.

FMC's re-consideration of the agreement will also "not commence until the Commission has received a fully compliant response to its inquiry." It has 45 days from when it determines responses to the RFAI are deemed complete to review the agreement for competitive and legal concerns before it becomes effective.

A 15-day public comment period will open once public notice of the RFAI is published in the Federal Register next week.

ONE, HMM, and Yang Ming are currently members of THE Alliance along with Hapag-Lloyd. The German line, however, announced its intention to depart the shipping alliance and start a new long-term operational collaboration with Maersk in February 2025 called "Gemini Cooperation."

ONE, HMM, and Yang Ming announced in September that they will continue to cooperate closely under the new alliance name Premier Alliance, effective for five years from February 2025.

The new alliance members said they will cooperate on mainline services across the major East-West Tradelines: Asia - North America West Coast, Asia - North America East Coast, Asia - Mediterranean, Asia - North Europe, and Asia - Middle East.

The new five-year container alliance has also already teamed up with MSC for a slot exchange agreement.

Earlier in July, the FMC also halted progress on the Gemini Alliance and requested additional information regarding the agreement between Maersk and Hapag-Lloyd.

On September 9, however, the Commission gave its green light to the Gemini Cooperation Agreement, although noting that it will be "subject to extensive Commission monitoring."