FMC Chairman Cordero, Commissioner Doyle Meet with MARAD Administrator

Topics Include: U.S. - China Transportation Forum, Proposed P 3 Alliance, SISI Briefing, U.S.-flag International Fleet

By MarEx 2013-10-16 12:03:00

FMC Chairman Mario Cordero and Commissioner William P. Doyle met with Acting Maritime Administrator Paul “Chip” Jaenichen on October 8, 2013.  The officials discussed the recent hearing before the House Subcommittee on Coast Guard and Maritime Transportation.  The hearing titled, Maritime Transportation Regulations: Impacts on Safety, Security, Jobs, and the Environment; Part I, took place on September 10, 2013.  They also talked about the upcoming U.S. - China Maritime Transportation Forum, the proposed P 3 Alliance, and the U.S.-flag international fleet and synergies in this regard between agencies. 

The Federal Maritime Commission and the Maritime Administration will participate in the U.S. – China Maritime Transportation Forum later this month.  FMC Commissioner Doyle will attend the forum as part of the U.S. delegation on behalf of the Commission.  The agenda for this forum is still being formalized between the United States and China. 

Chairman Cordero explained the reported activities related to the proposed P3 Alliance.  The P3 Alliance is being proposed by the world’s three largest container carriers – Maersk, CMA CGM and MSC.  Chairman Cordero stated that the Alliance has not filed any formal agreements with the FMC, and that any proposed Alliance will be subject to the review of appropriate agencies in the European Union, China and the United States.

Commissioner Doyle summarized the recent meeting that he and FMC Commissioner Lidinsky held with representatives of China’s Shanghai International Shipping Institute (SISI) where, among other matters, China’s Value Added Tax (VAT) and the proposed P3 Alliance were discussed.

“We discussed at MARAD the U.S.-flag international fleet and in particular questions posed by congressional leaders at the recent House hearing.  I support a strong U.S.-flag international fleet.  Chairman Cordero and myself will certainly attend and participate in any MARAD forums in this regard,” Doyle said. “Mr. Jaenichen referenced at the Hearing that he will be putting together a forum after the first of the year, 2014.”

He added: “I anticipate the proposed P3 Alliance group of companies will being filing agreement(s) with the FMC in the near future.  Maersk, being a party to P3, is of great interest to me.  Maersk's U.S. subsidiary, Maersk Line Limited, is largest carrier in the U.S.-flag international fleet.  There have been many reports in the international maritime trade press that the P3 Alliance, once formed, will significantly reduce the number of vessels trading.  One of the things I will be looking for in their FMC filing is a detailed analysis on the impact the P3 Alliance will have on the U.S.-flag international fleet.”

Finally, the officials discussed synergies between agencies and the international U.S.-flag fleet.

The Federal Maritime Commission is the federal agency responsible for regulating the nation’s international ocean transportation for the benefit of exporters, importers, and the American consumer.  The FMC’s mission is to foster a fair, efficient, and reliable international ocean transportation system while protecting the public from unfair and deceptive practices.