Common use of AGREEMENT AUTHORITY Clause in Contracts

AGREEMENT AUTHORITY. 5.1 The Parties are authorized to meet, discuss, reach agreement and take actions deemed necessary or appropriate to implement or effectuate agreements regarding sharing of vessels, chartering or exchange of space, rationalization and related coordination and cooperative activities pertaining to their operations and services, and related equipment, vessels and facilities in the Trade. It is initially contemplated that the Parties will jointly coordinate the operation and sharing of space on up to 175 container vessels in the Trade, with nominal capacities ranging from 4,200-18,000 TEUs. The number of vessels operated may be adjusted up or down, provided, however, that without further amendment hereto, the Parties are authorized to operate as few as 130 vessels with a minimum weekly capacity of 130,000 TEUs, and as many as 220 vessels in the Trade, each with a maximum capacity of 21,000 TEUs, with a maximum weekly capacity of 250,000 TEUs. Each Party shall contribute vessel capacity as may be agreed by the Parties. The vessels contributed by the Parties shall be deployed as far as possible under a “Best Vessel for the Service” practice, and assigned to trade lanes and services for which they are best suited in a manner that is expected to maximize operational and cost efficiencies, based on such standards and criteria as the Parties may agree from time to time. The Parties may substitute vessels within the Agreement, subject to such standards and criteria as they may agree from time to time. The Parties shall conduct regular reviews of the services to be offered under this Agreement, and where necessary agree to make changes in accordance with Article 6. It is Original Page No. 2a intended that the services operated hereunder will provide sufficient slots to cover the Parties’ respective requirements for the movement of cargo in an expeditious and efficient manner.

AGREEMENT AUTHORITY. 5.1 The Parties are authorized to meet, discuss, reach agreement and take actions deemed necessary or appropriate to implement or effectuate agreements regarding sharing of vessels, chartering or exchange of space, rationalization and related coordination and cooperative activities pertaining to their operations and services, and related equipment, vessels and facilities in the Trade. It is initially contemplated that the Parties will jointly coordinate the operation and sharing of space on up to 175 container vessels in the Trade, with nominal capacities ranging from 4,200-18,000 TEUs. The number of vessels operated may be adjusted up or down, provided, however, that without further amendment hereto, the Parties are authorized to operate as few as 130 vessels with a minimum weekly capacity of 130,000 TEUs, and as many as 220 vessels in the Trade, each with a maximum capacity of 21,000 TEUs, with a maximum weekly capacity of 250,000 TEUs. Each Party shall contribute vessel capacity as may be agreed by the Parties. The vessels contributed by the Parties shall be deployed as far as possible under a “Best Vessel for the Service” practice, and assigned to trade lanes and services for which they are best suited in a manner that is expected to maximize operational and cost efficiencies, based on such standards and criteria as the Parties may agree from time to time. The Parties may substitute vessels within the Agreement, subject to such standards and criteria as they may agree from time to time. The Parties shall conduct regular reviews of the services to be offered under this Agreement, and where necessary agree to make changes in accordance with Article 6. It is Original Page No. 2a intended that the services operated hereunder will provide sufficient slots to cover the Parties’ respective requirements for the movement of cargo in an expeditious and efficient manner.