FMC Commissioner Defends Agency Competition Analysis

The reduced number of shipping alliances -- soon to be down from four to three -- is a "market-driven phenomenon" and not necessarily anti-competitive, Commissioner Rebecca Dye of the Federal Maritime Commission said during a Jan. 31 National Industrial Transportation League event (here). "The alternative to operational alliances is not the status quo," she said. "The dynamics of our liner shipping markets will continue to produce commercial and economic change," she said. The agency holds no position on alliances in general, but will seek "to ensure that the dynamics of the marketplace determine economic outcomes," she said. The Justice Department Antitrust Division voiced objections to the FMC over two recent alliance proposals and advised the agency to stop the alliances in court (see 1611280024). While the FMC didn't stop the alliances, it used analysis similar to the DOJ's and the Federal Trade Commission's, Dye said. One recent staff paper found that "the impending reduction from four to three strategic alliances should, considered in isolation from other factors, actually decrease freight rates." Dye also provided an update on the Supply Chain Innovation Teams (see 1605030029) and said the coming next phase will focus on export supply chains. "I will also continue to pursue options for the development of a robust conceptual model or a pilot project for a national portal for critical supply chain information," she said.