Five large terminal companies and the Port of Rotterdam Authority filed the “Global Ports Group Agreement” with the Federal Maritime Commission to promote the efficiency and effectiveness of the container port industry.
Five large terminal companies and one European port authority have joined together to file a discussion agreement with the Federal Maritime Commission (FMC) in attempts to establish a structured organization to improve the container port industry.
The discussion agreement, known as the “Global Ports Group Agreement (Agreement No. 012449),” was filed with the FMC on Friday and is scheduled to take effect Jan. 28.
“The purpose of the agreement is to authorize the group to provide a forum for the members to meet, discuss, collect and exchange information, and coordinate and reach agreement and implement actions concerning the efficiency and effectiveness of the container port industry as an integral part of the maritime supply chain, by persons with primary responsibility for the policies and actions of the respective members,” the agreement said.
Initial members of the agreement include:
• APM Terminals;
• DP World;
• Hutchinson Port Holdings;
• PSA International;
• Shanghai International Port (Group) Co.;
• And the Port of Rotterdam Authority.
Highlights of the agreement include:
• Its geographic scope shall extend between the U.S. and foreign ports and points, but it is understood that members can conduct activities in trades other than those involving the U.S. and that activities outside the scope of the Shipping Act of 1984, as amended (“The Act”), are not a result of the filing or the effectiveness of this agreement brought within the scope of the act, the exemption from the antitrust laws provided by the act, or the jurisdiction of the U.S. FMC;
• Members agreed to respect and comply with the antitrust and competition laws of all applicable jurisdictions;
• The group shall appoint a chairman and elect a secretary;
• Expenses of the group shall be shared by the members on a strictly pro rata basis, and initially, each member shall contribute $30,000 as its share of group expenses, with subsequent contributions to be decided upon as necessary;
• Any marine terminal operator, including port authorities, engaged in the planning, development or operation of container terminals in international commerce can apply to become a group member;
• The group shall be composed of one representative from each member, who shall be the chief executive officer, managing director, or other person at the highest management level of the member;
• Any member may withdraw from the agreement;
• The agreement may be amended by the affirmative vote of a two-thirds majority of the members;
• And it is anticipated that the group will meet in person twice each year.
“If any discussion or exchange of information results in any proposals or agreements of concerted action, those proposals or agreements shall be subject to the right of each member to independent action and to necessary approvals or requirements of governments,” the agreement said, also noting how members would not be obligated to exchange information.
If information and documents are exchanged between the parties under authority of the agreement, they will be filed with the commission and will be exempt from disclosure under the Shipping Act of 1984. The agreement noted that “working sub-groups” may be set up to “discuss and develop and exchange information as to specific topics of interest.”
The proposed agreement is analogous to the so-called “Box Club” – an organization that allows top liner company executives who meet periodically. The Box Club was formed in 1974 by FMC Agreement No. 010099. The formal name of the Box Club is the International Council of Container Ship Operators.
