The Federal Maritime Commission, FMC, has cleared the partners in The Alliance’s proposed fund aimed at protecting customers in case one of the container carriers face financial difficulties, informs the FMC in a press release.
The Alliance consists of Hapag-Lloyd, the three Japanese carriers NYK Line, MOL, and K Line as well as Taiwan’s Yang Ming.
Back in August, The Alliance submitted an application to the FMC to have the new fund added to its already-approved cooperation in the US, noting that such a fund will help address market concerns.
“This amendment reflects the market process in action,” says acting FMC Chairman Michael Khouri.
Several media report that the carriers will initially inject 50 million USD into the fund.
Result of Hanjin Shipping’s collapse
The fund is a consequence of the discussions which arose after the insolvency and subsequent bankruptcy of South Korea’s Hanjin Shipping, at the time one of thew world’s 10 biggest container carriers.
The bankruptcy triggered chaos in large parts of the international container sector, including ports, and saw many shippers being unable to get their containers off Hanjin’s vessels.
Following the collapse of Hanjin, numerous US-based shippers openly criticized the fact that The Alliance did not take over transport of the stranded containers, a task the companies were largely left to handle on their own.
The US was particularly hard hit by the chaotic situation, as several of the country’s major retailers used Hanjin and thus wound up with billions of dollars trapped in the collapse.
English Edit: Daniel Logan Berg-Munch
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BY OLE ANDERSEN