Breaking Down the FMC’s Probe into the World Shipping Council

At Gain Consulting, we empower U.S. shippers to navigate complex regulatory and market challenges with data-driven strategies that optimize costs and efficiency. On June 26, 2025, the Journal of Commerce reported that the Federal Maritime Commission (FMC) launched an investigation into the World Shipping Council (WSC), questioning whether its cooperative agreement falls under U.S. shipping law and potentially ending its antitrust exemption for ocean carrier members. This probe could reshape carrier collaboration, impacting freight rates, capacity, and supply chain stability. This fact-based blog post analyzes the FMC’s investigation, its implications for U.S. shippers, and actionable strategies to thrive in this evolving landscape.

The FMC’s Investigation: Key Facts

The FMC announced on June 26, 2025, that it is reviewing the WSC’s “working arrangement” to determine if it violates the Shipping Act of 1984. The WSC, a global trade association representing ocean carriers, filed its cooperation agreement with the FMC in 2020, two decades after its formation. This agreement, as required by U.S. law, allows WSC members to discuss non-commercial matters like safety, environmental regulations, and legal issues without antitrust scrutiny. The FMC’s probe focuses on two critical questions:

1. Jurisdiction: Does the WSC’s agreement fall under FMC authority, given that the WSC itself does not provide ocean transportation services?

2. Antitrust Exemption: Should the agreement be canceled if it does not align with the Shipping Act’s definition of regulated activities?

Key details from the FMC’s order (Journal of Commerce, June 26, 2025):

• WSC’s Status: The FMC argues that the WSC may not qualify as an “ocean common carrier” under the Shipping Act because it does not perform transportation functions. While WSC members are carriers, their activities under the agreement focus on advocacy, not operations.

• Scope of Agreement: The WSC’s 2020 filing covers discussions on safety, environmental, and legal matters, not rates, capacity, or commercial operations. The FMC acknowledges that cargo screening discussions may align with operational activities but cites court rulings that such agreements must be narrowly operations-focused.

• Antitrust Concerns: The FMC notes that trade associations not engaged in transportation services may not qualify for antitrust immunity, as Congress intended to protect only specific operational collaborations.

• Timeline: The WSC has two months to respond, with the FMC’s final decision expected by March 2026.

• WSC’s Response: The WSC stated that it filed the agreement “in accordance with its legal obligation” and with FMC encouragement, emphasizing its commitment to regulatory compliance (Journal of Commerce).

Key Takeaway: The FMC is investigating whether the WSC’s 2020 agreement qualifies for antitrust exemption under U.S. shipping law, with a decision due by March 2026 that could impact carrier collaboration.

Contextual Factors Shaping the FMC Probe

Several economic and industry trends amplify the significance of the FMC’s investigation for U.S. shippers:

1. Freight Market Volatility: A freight recession (FreightWaves, June 2025) and LTL shipment declines (6.8% for ODFL, 5% for XPO, 0.4% for Saia, CCJ, June 18, 2025) reflect weak demand, pressuring carriers to maintain profitability.

2. Tariff-Driven Disruptions: A tariff-driven import surge at West Coast ports (138,519 TEUs in Los Angeles, Journal of Commerce, June 24, 2025) and looming 55% tariffs on Chinese imports (Journal of Commerce, June 20, 2025) create uncertainty, with relief expiring on July 9 and August 14, 2025.

3. Transborder Freight Declines: April 2025 transborder freight fell 8.5% to $126.3 billion, with U.S.-Canada freight down 13.6% (BTS, June 2025), impacting key ports like Laredo and Detroit.

4. E-Commerce Pressure: 15% cross-border e-commerce growth in 2024 (U.S. Census Bureau) drives demand for low-cost, fast delivery, with 68% of consumers expecting transparency (FedEx 2025 E-Commerce Trends Report).

5. Regulatory Environment: The FMC’s focus on compliance aligns with broader scrutiny of carrier practices, as seen in recent NMFC changes (DC Velocity, June 19, 2025).

Key Takeaway: The FMC probe occurs amidst a freight recession, tariff uncertainty, transborder declines, e-commerce growth, and regulatory shifts, amplifying its impact on shippers.

Implications for U.S. Shippers

The FMC’s investigation into the WSC’s antitrust exemption has significant implications for U.S. shippers:

1. Carrier Collaboration Risks: If the FMC revokes the WSC’s exemption, carriers may limit discussions on safety, environmental standards, or cargo screening, fearing antitrust lawsuits. This could lead to inconsistent protocols, increasing compliance costs.

2. Freight Rate Volatility: Reduced collaboration may disrupt carrier alliances, potentially raising trans-Pacific rates (currently $2,900/FEU, Platts, June 2025) as carriers prioritize profitability over coordination.

3. Supply Chain Disruptions: Fragmented safety or environmental standards could delay shipments, impacting 76% of shoppers expecting real-time updates (FedEx), especially at high-volume ports like Los Angeles.

4. Cost Pressures: Higher compliance or operational costs from disrupted carrier agreements may be passed to shippers, squeezing margins amidst a 5.4% LTL PPI increase (Trucking Dive, June 16, 2025).

5. Capacity Constraints: Uncertainty may delay carrier investments in capacity, exacerbating bottlenecks during peak seasons (DAT One, June 2025).

Key Takeaway: The FMC probe could disrupt carrier collaboration, raising freight rates, compliance costs, and risks of delays while complicating capacity planning.

Strategic Recommendations for U.S. Shippers

To navigate the FMC’s investigation and its potential impacts, Gain Consulting recommends the following strategies for U.S. shippers in 2025:

1. Monitor Regulatory Developments:

2. Optimize Freight Operations:

3. Strengthen Inland Logistics:

4. Enhance Inventory Management:

5. Leverage Technology:

6. Diversify Sourcing Strategies:

7. Improve Customer Communication:

8. Prepare for Peak Season

   
   

Key Takeaway: Shippers can mitigate FMC probe risks by monitoring developments, optimizing freight, strengthening logistics, managing inventory, leveraging technology, diversifying sourcing, communicating effectively, and preparing for peak seasons.

The FMC’s probe into the WSC’s antitrust exemption, with a decision due by March 2026, could reshape carrier collaboration and impact freight costs and supply chain stability. Partner with Gain Consulting to build a resilient, cost-effective supply chain that thrives in 2025’s regulatory landscape.

Contact Gain Consulting today to future-proof your logistics strategy.

Sources: Journal of Commerce, “FMC Reviewing World Shipping Council’s Antitrust Exemption,” June 26, 2025; Journal of Commerce, “Tariff-Driven Import Surge,” June 24, 2025; CCJ, “Old Dominion, XPO, and Saia See Shipment Declines,” June 18, 2025; Trucking Dive, “LTL PPI Increase,” June 16, 2025; DC Velocity, “C.H. Robinson AI Agent,” June 19, 2025; Journal of Commerce, “Changing US Tariffs,” June 20, 2025; Economy in Brief, “Philadelphia Fed Factory Index,” June 23, 2025; Bureau of Transportation Statistics, “Transborder Freight,” June 2025; FedEx 2025 E-Commerce Trends Report, February 18, 2025; U.S. Census Bureau, E-Commerce Statistics, 2024; Supply Chain Management Review, Inventory Trends, June 2025; DAT One, Freight Market Trends, June 2025; Uber Freight Q2 Outlook, May 2025.