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Wednesday, December 13, 2017

MAJOR SHIPOWNER ORGANISATIONS URGE THE FMC TO OUTLAW EXCLUSIVE TUG ARRANGEMENTS ON THE LOWER MISSISSIPPI RIVER

BIMCO, CENSA, ICS, INTERCARGO and INTERTANKO support the conclusion in the US Federal Maritime Commission’s (FMC) Show Cause Order of 11 June that the marine terminal operators on the lower Mississippi should cease to operate exclusive tug service arrangements.

These arrangements are unjust and unreasonable, they have stifled competition, inflated price levels by between 12% and 51% and are damaging to vessel operators.

The five international organisations have therefore urged the FMC to press ahead with its proceedings and to stop these anti-competitive practices as soon as possible.

Background Note

The Federal Maritime Commission issued an Order to Show Cause on 11 June concerning exclusive tug agreements made by marine terminal operators on the lower Mississippi.  The FMC Order concludes that those arrangements are unreasonable and should stop.

Click here to download the BIMCO, CENSA, ICS, INTERCARGO and INTERTANKO joint statement.