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Matson’s monopoly of US-Guam route ends if APL and Feds win law suit
来源： 编辑：编辑部 发布：2018/03/28 14:09:37
MATSON's dominance of the US mainland to Guam sea freight shipping route could be put into jeopardy if the US Court of Appeals for the 9th Circuit rules in favour of APL Marine Services and the US Department of Transportation Maritime Administration.
Matson currently operates 22 vessels in the Pacific and has been a major player in the market since the late 19th century.
The dispute arises from Maritime Administration's decision to allow APL to replace two Maritime Security Programme vessels in the Middle East with two smaller ships in the Pacific, the APL Guam and the APL Saipan, the Guam Daily Post reported.
Launched in 1996 the Maritime Security Programme allows the government to maintain a fleet of privately owned, militarily useful vessels that can both meet national security needs and strengthen the US presence in international commercial shipping.
MSP participants agree, in exchange for annual subsidies for each enrolled vessel, that they make their ships available to the military during times of war or other national emergencies.
APL currently has nine vessels enrolled in the MSP.
In APL's court-filed brief the company states that the Maritime Administration concluded APL's vessels met all statutory criteria for the MSP and further determined each replacement vessel was commercially viable and would be operated in providing transportation in foreign commerce.
Matson's brief, however, states registry endorsements do not apply to Saipan. The brief further argues Saipan and Guam are US territories and that the commerce is domestic and therefore the ships should be ineligible.
Matson also contends that since APL's initial filing, Congress has passed legislation that states, "MSP vessels shall not be operated in the transportation of cargo between points in the US and its territories either directly or via a foreign port."
APL currently operates a weekly service to and from Guam and the US west coast with the ships stopping in Saipan.
In its application to shift from the Middle East to the Pacific, APL said one ship was to be used for a biweekly service between Japan and Guam while the other ship would be used to carry US mainland cargo to Guam and then further onto Palau, Micronesia and New Guinea.
Matson currently operates 22 vessels in the Pacific and has been a major player in the market since the late 19th century.
The dispute arises from Maritime Administration's decision to allow APL to replace two Maritime Security Programme vessels in the Middle East with two smaller ships in the Pacific, the APL Guam and the APL Saipan, the Guam Daily Post reported.
Launched in 1996 the Maritime Security Programme allows the government to maintain a fleet of privately owned, militarily useful vessels that can both meet national security needs and strengthen the US presence in international commercial shipping.
MSP participants agree, in exchange for annual subsidies for each enrolled vessel, that they make their ships available to the military during times of war or other national emergencies.
APL currently has nine vessels enrolled in the MSP.
In APL's court-filed brief the company states that the Maritime Administration concluded APL's vessels met all statutory criteria for the MSP and further determined each replacement vessel was commercially viable and would be operated in providing transportation in foreign commerce.
Matson's brief, however, states registry endorsements do not apply to Saipan. The brief further argues Saipan and Guam are US territories and that the commerce is domestic and therefore the ships should be ineligible.
Matson also contends that since APL's initial filing, Congress has passed legislation that states, "MSP vessels shall not be operated in the transportation of cargo between points in the US and its territories either directly or via a foreign port."
APL currently operates a weekly service to and from Guam and the US west coast with the ships stopping in Saipan.
In its application to shift from the Middle East to the Pacific, APL said one ship was to be used for a biweekly service between Japan and Guam while the other ship would be used to carry US mainland cargo to Guam and then further onto Palau, Micronesia and New Guinea.