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FMC Investigates Port of Houston Agreements with Container Lines
The Federal Maritime Commission (FMC) is investigating agreements between the Port of Houston and major shipping lines, which it suspects may include provisions that force the shipping lines to prioritize use of the port.
Port of Houston, US (Photo: gCaptain/Phaata)
The Federal Maritime Commission (FMC) has initiated an investigation into Terminal Services Agreements (TSAs) between the Port of Houston and several major container shipping lines.
In a July 11 filing, the agency said the non-judicial investigation will examine Terminal Services Agreements (TSAs) between the Port of Houston and several major container shipping lines to determine whether the agreements require certain shipping lines to route a percentage of their loaded containers through the Port of Houston and away from other competing port hubs in the Gulf of Mexico.
TSAs are contracts between ports and shipping lines that specify the terms and conditions for the use of port facilities and services.
At the heart of the investigation are the “Commitment Clauses” and “Shortfall Amounts” included in these TSA agreements. These provisions potentially oblige the participating carriers, including CMA CGM, Evergreen Line Joint Service, Hapag-Lloyd (OTC: HLAGF), Maersk Line, Mediterranean Shipping Co., and Zim Integrated Shipping Services Ltd. (NYSE: ZIM), to guarantee a specific volume of containers through the Texas gateway.
The filing states that the FMC’s Bureau of Enforcement, Investigation and Compliance (BEIC) will closely review the circumstances that led to the creation, conclusion and enforcement of these provisions.
In 2024, the Port of Houston handled a record 4.12 million 20-foot equivalent units (TEUs), up 8% year-over-year.
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