[060111.EN.SEA] FMC Capacity Investigation Report Draws Mixed Response From Shippers

THE US Federal Maritime Commission (FMC), after a nine-month investigation into the deteriorating service standards of carriers on the transpacific trade in relation to containership capacity and equipment shortages, has concluded that capacity conditions in the US trades have stabilised.  It has, however, recommended that carriers work together and communicate more closely with shippers to avoid the occurrence of the above problems and to improve the shipper-carrier relationship, which is widely considered a formidable task.  Shippers have been critical of carriers in recent times, accusing them of adopting practices that favour themselves, rather than the industry as a whole.  In response to the FMC’s report, the US National Industrial Transportation League (NITL), which represents more than 600 American shipper and forwarder members, expressed "profound disappointment” in the report’s findings. It said the FMC's announcement seemed to suggest that service disruptions, rolled cargo, cancelled contracts and uniform rate increases experienced between the second half of 2009 and earlier this year were a simply a result of a "misunderstanding" between the two sides over their contractual obligations.  "We were expecting that a 'fact finding investigation' conducted over a nine month period would have yielded some facts about what happened - or did not happen - during this protracted disruption of the shipping market in the Pacific," said NITL president Bruce Carlton.  According to a statement issued by the NITL, the group argued that the FMC’s announcement failed to include any reference to the findings made during the investigation and its conclusion.  “The Commission also failed to include any analysis of the facts gained in 170 interviews with market participants under the relevant statute that it administers. "The FMC appears to have concluded that these problems were simply a misunderstanding between carriers and their customers over their respective contractual obligations.

Source : CSM, 29.12.10.