China Strikes Down P3 Network

By Eric Haun
Tuesday, June 17, 2014
A CMA CGM containership in China (Photo courtesy of CMA CGM)

The P3 Network will not be implemented following decision by the Ministry of Commerce (MOFCOM) in China

Today, the Ministry of Commerce (MOFCOM) in China announced that they have not given their approval to the P3 Network.

On March 24, 2014, the U.S. Federal Maritime Commission (FMC) decided to allow the P3 Network agreement to become effective in the U.S., and on June 3, 2014, the European Commission informed the P3 partners that it had decided not to open an antitrust investigation into P3 and had closed its file.

MOFCOM’s decision follows a review under China's merger control rules and is different from the positions of the FMC and the European Commission.

The P3 partners said they take note of and respect MOFCOM’s decision.

Based on the decision of the MOFCOM, Maersk Line, MSC and CMA CGM have agreed to end P3 implementation.

Vincent Clerc, Chief Trade and Marketing Officer, Maersk Line, said, “In Maersk Line we have worked hard to address the Chinese questions and concerns. So of course it is a disappointment. P3 would have provided Maersk Line with a more efficient network and our customers with a better product.”

Maersk Group CEO Nils S. Andersen added, “The decision does come as a surprise to us, of course, as the partners have worked hard to address all the regulators’ concerns. The P3 alliance would have enabled Maersk Line to make further reductions in cost and CO2 emissions and not least improve its services to its customers with a more efficient vessel network. Nevertheless, I’m quite confident Maersk Line will accomplish those improvements anyway. It has delivered on those improvements over the last five quarters in the absence of P3 and I’m confident it will continue to do so.”

P3 was designed as a long-term operational vessel sharing agreement proposed by MSC, CMA CGM and Maersk Line.

On June 18, 2013, Maersk Line, MSC Mediterranean Shipping Company S.A. and CMA CGM announced their intention to establish a long-term operational vessel sharing agreement on the East – West trades, called the P3 Network. The overall aim of P3 was to make container liner shipping more efficient and improve service quality for shippers and customers with more frequent and reliable services.

P3 was intended to be an operational, not a commercial, cooperation.

Maritime Reporter November 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

DNV GL bags Two Lloyd’s List Awards

DNV GL was recognized for its leadership and ability to innovate when it received both the “Classification Society” and the “Innovation Award” at the 2014 Lloyd’s

J.Poulsen Shipping & Harren & Partner Join Forces

After having established Combi Lift as one of the leading companies within ocean transportation of heavy lift and project cargoes the owners, J. Poulsen Shipping

U.S. Drillers Cut Rigs to Lowest since August

Energy companies have reduced the number of rigs drilling for oil in the United States to the lowest since August, shifting more rigs in favor of natural gas as crude prices dive,

News

DNV GL bags Two Lloyd’s List Awards

DNV GL was recognized for its leadership and ability to innovate when it received both the “Classification Society” and the “Innovation Award” at the 2014 Lloyd’s

Royal IHC Bags Dredging Package Order

Royal IHC (IHC) has secured a new contract with the Chinese shipyard, Jin Hai Heavy Industrial Group, for the delivery of a dredging installation package for a trailing suction hopper dredger.

J.Poulsen Shipping & Harren & Partner Join Forces

After having established Combi Lift as one of the leading companies within ocean transportation of heavy lift and project cargoes the owners, J. Poulsen Shipping

Government Update

Italy Ending Med Sea Rescues

Rights groups warn of risk of more deaths; EU mission Triton will have more limited scope. Italy said on Friday it would close a sea rescue mission that has saved the lives of more than 100,

MARAD Tests Alternative Power for Ships

The Maritime Administration (MARAD) is testing state-of-the-art, environmentally efficient technology onboard the Training Ship (TS) Kennedy.   The National Defense

St. Lawrence Seaway Workers Extend Strike Deadline

The union that represents workers on the St. Lawrence Seaway, the waterway that links the Great Lakes and the Atlantic Ocean, has extended a strike deadline to Monday at 5 p.

Logistics

U.S. Drillers Cut Rigs to Lowest since August

Energy companies have reduced the number of rigs drilling for oil in the United States to the lowest since August, shifting more rigs in favor of natural gas as crude prices dive,

Italy Ending Med Sea Rescues

Rights groups warn of risk of more deaths; EU mission Triton will have more limited scope. Italy said on Friday it would close a sea rescue mission that has saved the lives of more than 100,

St. Lawrence Seaway Workers Extend Strike Deadline

The union that represents workers on the St. Lawrence Seaway, the waterway that links the Great Lakes and the Atlantic Ocean, has extended a strike deadline to Monday at 5 p.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Pod Propulsion Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1812 sec (6 req/sec)