P3 Alliance rejected by China
The P3 Alliance of the world’s three largest shipping companies Maersk, CMA CGM and MSC has been blocked after China refused to support the network.
As reported by the Chinese Ministry of Commerce, the P3 Network would prevent the competition on the world’s busiest Asia-Europe vessel container loops. After the approval of US and EU, the negative decision of China becomes a surprise for the participants of the alliance.
Last year in June the three biggest shipping lines Maersk, CMA CGM and MSC made a decision to establish a long-term operational alliance on the East-West container routes - the P3 Alliance. The main aim of this network was to improve the container liner shipping on the basis of more frequent and reliable services. The trio should have been not a commercial, but an operational vessel-pooling. The three partners were intended to be sovereign in relation to marketing, customer service and pricing policy.
At the end of March 2014, the long-term operational vessel sharing agreement was approved by the U.S. Federal Maritime Commission. On June the 3rd the P3 Network got the green light from EU, when the European Commission closed the EU antitrust investigation of P3 Alliance. Maersk, CMA CGM and MSC were intended to deploy 255 vessels at the 29 trade routes. Maersk was going to involve 42 % of its fleet into the alliance, including the mega-container ships of Triple-E class. The P3 would have operated a capacity of 2,6 million TEU and its planned loops were: Asia-Europe, Trans-Pacific and Trans-Atlantic. The work of the P3 Alliance was expected to start in the autumn of 2014.