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Controlled Ocean Carrier List Down to Two

Wednesday, August 02, 2017
Sandler, Travis & Rosenberg Trade Report

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.

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