US shippers lobby backs slack for new Chinese state-own carrier

US SHIPPERS lobby, the National Industrial Transportation League (NIT), has come to support a petition from the new transpacific Chinese carrier, the Hainan PO Shipping Co Ltd, that it be exempt it from restrictions in the US Controlled Carrier Act.

As the new player on the transpacific, Hainan's first ship was scheduled to call Chinese ports last week and arrive in Long Beach on September 1.

Addressing the Federal Maritime Commission, the NIT sought to exempt the Chinese state-owned enterprise to allow it to cut rates without giving 30 days notice, reported American Shipper. NIT League noted that the act required "controlled carriers" to be subject to a 30-day waiting period so the FMC could assess possible predatory pricing to eliminate rival carriers.

But the shippers lobby argued that it supports the Hainan petition because the reduction of rates on less than 30 days notice could only benefit American importers and exporters by enhancing competition among ocean carriers on the transpacific.

The FMC, it argued, would still have the authority to investigate Hainan as a controlled carrier if its rates were found not to be just and reasonable.
(Source:www.schednet.com)