Ocean carrier alliance causes discriminatory monopoly in trans-Pacific.
Alliances could be considered a type of third-party provider. Ocean carriers sometimes form alliances to help keep prices low. Early on, alliances were created to fill the ships as ship sizes started to grow. Alliances make it so that there can be fewer trips and so that it is less costly to shippers, consignees, and ultimately consumers.
However, alliances do have their drawbacks. Currently, three alliances have over 90% control of the trans-Pacific trade, creating was seems to be a monopoly. This gives them the opportunity to discriminate. A Pennsylvania based company, MSC, has filed a complaint against the alliances controlling the trans-Pacific. The complaint was filed with the Federal Maritime Commission, alleging over $600,000 in damages.
Gallagher, J. “US company sues ‘collusive’ ocean carriers, alleging price manipulation.” August 1, 2021. Freightwaves. Retrieved from: https://www.freightwaves.com/news/us-company-sues-collusive-ocean-carriers-alleging-price-manipulation