[020211.EN.SEA] US FMC Votes To Probe Slow Steaming

THE US Federal Maritime Commission has voted to probe slow steaming, said to be an environmental measure, but which the industry understands absorbs overcapacity, thus encouraging higher rates while at the same time saving carriers fuel burn because slower ships consume less bunker.

While environmentalists are seldom satisfied with any industry eco-measure, thus failing to stem the rising tide of complaint, the practice also angers shippers because it provides carriers financial benefits which they say are not passed on to them.

Last year, the FMC allowed the Transpacific Stabilisation Agreement, a quasi conference of 15 carriers, to implement slow steaming, now deployed on most transpacific routes, reported American Shipper.

FMC lawyer Lowry Crook said that under Shipping Act, the FMC can get an injunction against agreements that reduce competition and produce an "unreasonable reduction" in services or "unreasonable increases" in transport costs.

Source : HKSG, 01.02.11.