FMC Commissioner Would Like Carrier Information on Congestion Reduction Efforts

The Federal Maritime Commission should request that the four major shipping alliances "provide new information on the steps each is taking to reduce congestion at U.S. ports," said FMC Commissioner Michael Khouri (here). "In terms of overall costs and service levels in the liner supply chain as experienced by U.S. exporters and importers, there has been a deterioration in service and significant increase in costs due to several factors," he said. Loading practices at Asian ports have allegedly resulted in the need for "additional intra-facility ground moves to and among each of the local terminals operated by the individual alliance members before the container is dispatched out of the port complex," said the press release. The FMC approved the alliances as long as "the alliance agreement will not produce unreasonable reductions in transportation service or unreasonable increase in transportation cost," it said.