FMC Warns Carrier Groups on 'Outright Defiance'

Federal Maritime Commission Chairman Richard Lidinksy says the container shipping industry's trans-Pacific discussion groups are showing "near outright defiance” of a commission's oversight order and warned he'll take action unless he gets timely responses to questions.

Lidinsky's broadside Thursday against the Transpacific Stabilization Agreement and the Westbound Transpacific Stabilization Agreement came after they have “stiff-armed” the commission with “shockingly tardy” responses.

The FMC in September 2010 ordered transcripts of all TSA and WTSA meetings following an investigation of charges the carriers manipulated container and vessel capacity to raise rates in late 2009 and early 2010. The order stands until April 2012.

“We have a situation where a group of shipping lines have been given antitrust immunity to collude to raise the rates that American shippers and consumers pay ... All we ask in return are some transcripts and minutes — something just about any lawyer gets for simple depositions or proceedings as a routine matter,” Lidinsky said

The groups were given 21 days after a meeting to file a transcript, but FMC General Counsel Rebecca Fenneman said some groups didn’t file transcripts until as much as 28 days after the meeting. Out of 83 transcripts of live TSA meetings or conference calls, 18 were late. Out of 121 meetings by the WTSA, 24 transcripts were late.

The commission also required copies of e-mail exchanges among TSA and WTSA members, and one was a year late. The discussion agreements notified the FMC only once that a transcript would be late.

Fenneman said the late filings appeared to be because of clerical difficulties. Lidinsky agreed, noting some carriers in the agreements individually were “excellent regulatory citizens.”

Contact R.G. Edmonson at bedmonson@joc.com. Follow him on Twitter @BobinWash.