Controlled Ocean Carrier List Down to Two
The Federal Maritime Commission’s latest list of controlled carriers includes only two following what the FMC calls “the spate of consolidation activity that has occurred [among liner companies] over the last two years.” The current list features only COSCO SHIPPING Lines Co. Ltd. of China and CNAN Nord SPA of Algeria.
A controlled carrier is one that is, or whose operating assets are, directly or indirectly owned or controlled by a government. The FMC may prohibit the publication or use of a rate, charge, classification, rule, or regulation that a controlled carrier has failed to demonstrate is just and reasonable. This authority is designed to ensure that controlled carriers, whose marketplace decision-making can be influenced by foreign governmental priorities or by their access to non-market sources of capital, do not engage in unreasonable below-market pricing practices that could disrupt trade or harm privately-owned shipping companies.
The FMC lists the following changes to this list since its last publication in July 2015.
- COSCO SHIPPING Lines (Europe) GmbH was removed since all of its tariffs were cancelled effective May 24, 2017.
- Two controlled carriers, China Shipping Container Lines Co., Ltd. and COSCO Container Lines Company Limited, formed a single controlled carrier now known as COSCO SHIPPING Lines Co. Ltd.
- Hainan P O Shipping Co. Ltd. was removed because it no longer operates as a common carrier.
- American President Lines Ltd. and APL Co. Pte. are being removed because they are now 100 percent owned by CMA CGM S.A., a privately-owned company.
- United Arab Shipping Company Ltd. is being removed because it is now 100 percent owned by Hapag-Lloyd.