KPIs can keep ocean carriers from becoming “commoditized”

While the Global Shippers Forum recognizes that the world’s main regulators and competition authorities have different regulatory approaches, there is some commonality and convergence in outcomes: namely preventing anti-competitive conduct by ensuring that unreasonable higher shipping costs are not imposed on shippers through information exchanges or manipulation of capacity.

In that connection, the GSF has welcomed the markers laid down by the U.S. Federal Maritime Commission (FMC) and MOFCOM, the Chinese competition authority, with regard to the P3 agreement.  Most notably, the monitoring conditions recommended by GSF and introduced by the FMC to monitor capacity and rates, and in China’s anti-monopoly laws which led them ultimately to reject the P3.

As noted in LM’s news section, the GSF is also calling on the EU, US, and Chinese regulatory and competition authorities to share monitoring data and information to prevent potential competition abuses in the interests of shippers and consumers.

According to GSF Secretary General, Chris Welsh, shippers understand that they have a “shared interest” with the liner companies to provide a long-term sustainable framework for investment in liner shipping services and the wider maritime logistics supply chain:

“Clearly the 2M, G6, CKYHE and Ocean Three leaderships believe that mega-alliances are the answer to a sustainable future for the liner shipping industry.  With that, let us agree a workable and rigorous set of monitoring KPIs that can provide the required level of confidence to customers that alliances will not only deliver service and cost improvements but give reassurance to shippers that they can confidently invest in their maritime and logistics supply chains.  Our door is firmly open to contribute to such confidence building measures.”