Shipping industry news reports that despite the Trump administration’s tougher stance on “foreign shipping” companies, U.S. shippers may not welcome the Federal Maritime Commission’s (FMC) antitrust investigation.
Specifically, the FMC has initiated a review of its agreement with the World Shipping Council (WSC), focusing on whether its members should continue to enjoy limited antitrust immunity.
James Hookham, Director of the Global Shippers Forum (GSF), noted that the Biden administration had previously considered similar action after the EU decided not to extend the Consortia Block Exemption Regulation (CBER).
He pointed out, “This move follows the Trump administration’s aggressive stance on shipping, but U.S. shippers were somewhat hesitant at the time because antitrust rules offer certain advantages for American cargo owners.”
According to him, one key advantage is that when freight rates on U.S. routes increase—whether through General Rate Increases (GRI) or surcharges—carriers must provide 30 days’ notice before implementation.
Alphaliner noted that the FMC “aims to assess whether the activities conducted by the WSC truly fall within the FMC’s regulatory authority under shipping laws.”
Under the agreement signed with the FMC in 2020, WSC members were granted limited antitrust immunity, allowing carriers to engage in activities such as information exchange, policy discussions, and developing common industry positions. The FMC observed that WSC’s activities may have deviated, focusing more on lobbying and policy discussions rather than direct operational cooperation.
WSC President and CEO Joe Kramek responded, “As a global trade association, the WSC takes its regulatory compliance responsibilities very seriously. We will fully cooperate with the FMC’s requests in all aspects.”
