The new alliance that Ocean Network Express (ONE), HMM, and Yang Ming have planned to replace their current alliance—which also includes Hapag-Lloyd—will not be approved right away, the Federal Maritime Commission (FMC) announced. The FMC said it required more time and information to authorize an alliance for the second time this year. The first time was when Maersk and Hapag-Lloyd filed to start the Gemini Cooperation.
As a replacement for their previous working arrangement, The Alliance, the three carriers submitted an application on October 28 for the new association to be called the Premier Alliance. The FMC pointed out that if it hadn’t taken the current step, the agreement would have automatically gone into effect on Thursday, December 12, which is 45 days away. The FMC has determined that in order to make a decision, it requires more information.
According to the Commission, the request for more information was made because it needs documents and information that can be verified in order to assess how the agreement will affect competition. It stated that the original file contained insufficient information or that some issues were not addressed. It concluded that the submission “does not contain enough information to enable a thorough examination of possible competitive effects and whether the agreement fully conforms with all statutory requirements.”
Vessel sharing, vessel slot exchange, and the three firms’ ability to debate and agree on matters like the size, quantity, and operational features of vessels operating under the agreement are all covered under the new alliance. Following Hapag-Lloyd’s departure from the existing Alliance for its new partnership with Maersk, the three firms announced in September 2024 that they had decided to maintain and strengthen their working relationship, including a separate arrangement with MSC Mediterranean Shipping Company.
One of the three industrial collaborations, the Alliance was established in 2016. According to the firms, it began operations in April 2017 and involved 260 ships, making 82 port visits and providing 31 distinct services on the main commercial routes. The Premier Alliance revealed information about its initial sailings and its intentions to scale up operations beginning in February 2025, the day before the FMC took its decision. On the east-west lines, they described ambitions to reach 24 services. 24 sailings are included as the initial examples of the new collaboration. It will begin in 2025 and last for five years.
The agreement’s approval is pending the requested further information, as per the guidelines of the review that the FMC initiated. The FMC has an additional forty-five days to assess the application after it is considered complete.
