FMC to discuss loosening of Chinese lines’ pricing restrictions
The U.S. Federal Maritime Commission will discuss exemptions from pricing restrictions imposed on Chinese state-owned shipping lines on Jan. 21, in a move that reflects the improved bilateral maritime relations between the United States and China.
The agency has scheduled a meeting in Washington to review three petitions filed separately by China Ocean Shipping (Group) Co. (COSCO), China Shipping Container Lines and Sinotrans Container Lines, requesting exemptions from restrictions under the U.S. Controlled Carrier Act, which targets government-controlled shipping lines.
The FMC will consider: COSCO’s petition for a partial exemption from the Controlled Carrier Act; China Shipping’s petition for permanent full exemption from related controlled carrier restrictions on rates set at below “a just and reasonable” level; and Sinotrans’ petition for a full exemption from the same pricing restrictions.
The agency will also discuss shipping restrictions, requirements and practices of the People’s Republic of China.
Under the recent, five-year bilateral maritime agreement between the United States and China, the Federal Maritime Commission was encouraged to rule on the partial relief from the “controlled carrier” restrictions, while China is expected to harmonize its rules in accordance with the agreement.