FMC rolls out financial contingency plan for members of THE Alliance
The Federal Maritime Commission (FMC) said it signed off on an amendment to The Alliance Agreement that, in a sense, ensures each member of THE Alliance has each other’s back in the form of a contingency fund that FMC said “can be used to help member carriers manage through, and recover from, the insolvency or financial distresses of a participating line.”
Established earlier this year, THE Alliance includes five container shipping lines, including: Hapag-Lloyd, K Line, MOL NYK, and Yang Ming. FMC said that under the terms of the agreement each container shipping member is permitted to share vessels, charter, and exchange space on each other’s ships and also enter into competitive working agreements.
“THE Alliance sought this amendment to address marketplace issues and consumer concerns.
Source Logistics Management.