Biden's harsh attack on alliances between container shipping companies

Biden will devote a significant portion of his "State" of the Union Adress" to the impact on the US economy of maritime transport that handles most of the trade with the foreign countries of the USA. In his speech the American president denounce that the maritime transport sector is dominated by a small number of large owned companies foreign, with in particular three world shipowning alliances that currently control 80% of transport capacity global container ship fleet and 95% capacity offer only on east-west sea routes which are the most important for the movement of world trade. A dominant position on the maritime transport market containerized - Biden will emphasize - strengthened significantly in recent years given that from 1996 to 2011 the three alliances managed only 30% of containerized transport worldwide.

Biden will accuse these shipping companies of having increased the costs of maritime shipping since the beginning of the Covid-19 pandemic, applying noli and soprannoli much more elevated of the previous ones. In addition, in his speech that he will give tonight (at 3 o'clock tomorrow, Italian time), the president will highlight the record profits that these shipping carriers foreign countries are recording, while at the same time prices for American consumers and businesses have increased.

Biden's stockpile will sink further into the denounce unfair commercial practices that would be conducted by these shipping companies to the detriment of businesses and farmers Americans, canceling or modifying shipping reservations maritime or imposing additional fees without prior notice. Practices - is the accusation of the government administration - that would undermine the ability of American companies to deliver orders on time. In addition, according to the White House, carriers seafarers would refuse to agree to carry the American exports departing from port docks Americans preferring to return their empty ships quickly in China.

In addition, Biden will highlight the lack of effectiveness of the current American legislation on the subject in countering this overwhelming power of shipping companies, specifying that if a century ago the Ocean Shipping Act established a regulation of a practical for ocean sea carriers, combining it with immunity antitrust for those alliance agreements between maritime carriers that were of "public interest", over time the Congress it then constantly deregulated the sector by expanding immunity antitrust and at the same time weakened the obligation of maritime carriers to make public tariffs and commissions.

Biden will announce measures to mitigate the impact on prices to the consumption and on American companies of the increase in the costs of the maritime transport through, in fact, an initiative of the Department of Justice and the federal agency FMC aimed at promoting the competition in the containerized shipping market. In particularly, the Dicastery of Justice will provide the Federal Maritime Commission supporting lawyers and economists of the Antitrust Division for the repression of violations of the Shipping Act and other rules governing maritime transport.

In addition to this, the American president will ask the Congress to pass incisive reforms to the rules for transport maritime, including the reform of antitrust immunities for alliances between containerized shipping companies.

The Biden administration's plan to "tighten the ropes" liner shipping carriers was greeted with considerable annoyance from the World Shipping Council (WSC), the association international that has as members 14 leading companies of world navigation, almost all of which constitute the three alliances (2M, Ocean Alliance and THE Alliance) cited by Biden, and all of foreign nationality with the exception of the American Matson.

"It is a pity - replied the WSC - that the President is demonizing ocean carriers, the sector that forms the backbone of the U.S. economy and the world and that has worked tirelessly during the pandemic for move more goods than at any other time of the history. Allegations that the maritime transport sector containerized is highly concentrated and non-competitive - replied the World Shipping Council - they are objectively wrong. Maritime carriers actively compete against each other in the global market, even on the most important sea routes for US trade, while concentration levels in many other U.S. industries are markedly superior compared to those of containerized shipping. Which clear signal of a competitive market that responds to an increase in the demand - noted the WSC - in 2021 the competition is grown, with more ships managed by a more pool wide of carriers serving transpacific trades. The conclusion is that containerized shipping is a very competitive sector, and that's what the numbers Show. Regulators in the USA and in Europe - underlined the WSC - have repeatedly and recently confirmed that it is so".

"The Ocean Shipping Reform Act passed in the House, which is deeply wrong - continued the World Shipping Council referring to the bill currently under consideration by the Senate American - will not solve the logistical problems on the ground that they are at the heart of America's supply chain problems. In reality, as it was written the legislation would worsen existing congestion and crack down innovation. Politicians must instead address the cause main congestion looking for real solutions that have a global and forward-looking vision of the supply chain, strengthening further the intermodal transport system that it supported the US economy during the pandemic".