FMC Updates List of Controlled Carriers
The Federal Maritime Commission added Hede (Hong Kong) International Shipping and removed COSCO Shipping Lines (Europe) from its list of controlled carriers, the agency said in a Feb. 26 notice.
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Controlled carriers, which are defined by the commission as being directly or indirectly owned or controlled by a government and providing services in the U.S., are subject to "enhanced oversight" by the FMC. The commission said the Shipping Act allows the commission to block a controlled carrier's use of a "rate, charge, classification, rule, or regulation" that the carrier failed to demonstrate is "just and reasonable." In addition, if a service contract is breached, the "dispute resolution forum" can't "in any way" be controlled by or affiliated with the controlled carrier or the government that controls the carrier, the commission said.
These protections were enacted to ensure that controlled carriers "do not engage in unreasonable below-market pricing practices which could disrupt trade or harm privately-owned shipping companies," the FMC said.
COSCO Europe was removed because it no longer provides "common carriage" in the U.S., the FMC said. The list now includes COSCO Shipping, Orient Overseas Container Line, OOCL Europe and Hede International.
Hede International couldn't be reached. COSCO Europe didn't respond to our request for comment.