Full Volume 19 - Federal Maritime Commission

820 FEDERAL MARITIME COMMISSION
severe icing conditions because of the risk to the vessel and her crew If Totem cannot
use POL Terminal I even on a flrst come first served basis It may be forced to leave
the trade at least temporarily Totem s refusal to use Terminals 2 and 3 is reasonable
Continuation of Totem s service to Anchorllle is In the public interest and should be
maintained if possible Continued use of Terminal I by Sea Land in a preferential basis
is contrary to the public interest in violation of section 15 of the 1916 Act in that there
is a real possibility that it will serve to effectively preclude Totem from offering a
competitive service during severe icinl conditions Therefore the presently approved
asreement between the City and Sea Land which lives Sea Land preferential berthinl
rights at Terminal I will be disapproved effective February 5 1976 unless the parties
prior to that date amend the asreement to provide that effective February 5 1976 such
preferential berthins rights shall not apply durins the months of February through April
1976 Agreement Nos T 1685 as mended and T 1685 6 Between the City of
Anchorllle and Sea Land Service Inc 69 79 80
Respondents six Japanese fllll carriers seekins continuation of asreements pursuant
to which they cooperate among themselves so as to provide a coordinated fully
containerized service between Japan and California entered into those asrllements to
facilitate the transition from a breakbulk to a fully containenzed service respondents
have recaptured the sl1are of conference carloes which they el loyed prior to commenc
has not
ins the transition and the conduct of respondents pursuant to the asreements
been shown to have been ul lustly discriminatory or unfair as between carriers
Asreements No 97183 and 9731 5 351 364
The transpacific trades throuah 1974 hl da sisnificant excess of caplll ity over carso
offered for carriase Agreements amons six Japanese flas carriers for cooperation amons
themselves to provide a coordinated fully containerized service between Japan and
California permit these carriers to offer the level of service Which they considered
competitively necessary with substantially less capacity than would be required fOr each
carrier to individually offer thatlevel of service The asreements therefore tend to
ameliorate the overtonnagns problllm in the trades and tend to keep a blah number of
common carriers in those trades Both of these results are beneficial to the public and
outweish the anticompetitive effects of the asreements sufliclently to justify continued
implementation of the agreements untlI Ausust 27 1977 when they wlIl terminate In
accordance with amendments now before the Commission for approval Consequently
the asreements are not contrary to the public Interest or detrimental to the commerce of
thelJnited States lei 365
The record does not show that asreements amons six Japanese flas carriers pursuant
to which the carriers cooperateamons themselves so as to provide a coorlllnated fully
containerized sorvlce between Japan and California have resulted in unfairly deprivlns
members of the Marine Cooks and Stewards Union of employment by U S fllll carriers
in the trades The decline In employment Is the result of several factors Including
modernization of the equipment used by the steamship comp llljes emplpylns the union
members the transfer of vessels previously employins union members to other trades
and the decline In the share of conference carso carried by the steamship lines
employing the union s members The decline in the share of conference cargo was
attributable in large part to the Increase In the share carried by a steamship company
which does not employ the union s members Even thouah the success el loyed by the
Japanese flag carriers has contributed to the decline in union employment It was not
proved that the agreements have beenu lst1y discriminatory or ulfair as between
carriers Thus the union did not prove that the agreements have unfairly deprived the
union members of employment Id 366