FMC Commissioner Opposes RoRo Carriers Tug Services Deal

Eukor Car Carriers A cooperative working agreement between four roll-on/roll-off (RoRo) carriers has encountered an obstacle in the plan to negotiate collectively for US tug services, according to the US Federal Maritime Commission (FMC). Namely, William P. Doyle, a Commissioner with the FMC, voted to disapprove the agreement amendment involving Wallenius Wilhelmsen Logistics AS (WWL), Eukor Car Carriers, American Roll-on Roll-off Carrier LLC (ARC), and Hyundai Glovis. The amendment filed with the FMC seeks to broaden the authority of the parties to jointly solicit bids for contracts covering the provision of tug services, and allow the companies to negotiate and enter into joint contracts with respect to such services. Maritime business community operating in and around the American waterways raised objections to the joint contracting and procurement language. Tens-of-thousands of family wage jobs are supported by these service providers and the U.S. coastal and inland waterways fleet. The American Waterways Operators said that foreign carriers should not be permitted to collectively negotiate rates with domestic maritime service providers, including tugboat operators. Such a provision would allow ocean carriers to gain an advantaged bargaining position because domestic entities have no counterbalancing ability to take collective action with immunity from the antitrust laws of the United States. Prior to this amendment, the Parties were required to negotiate separately with individual tug services.