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 July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Major Ivorian Cocoa Buyers Boycott Local Exporters Scheme

Major cocoa buyers are boycotting a scheme in Ivory Coast aimed at guaranteeing local firms a share of the lucrative export market, arguing that these players lack

DSM Dyneema Names President’s Successor

Gerard de Reuver has elected to step down as President of DSM Dyneema on August 1, 2015 after five years in the post, the company announced today. He will be succeeded by Golnar Motahari Pour,

Matson Pumps $30 Million into Alaska Operations

Ocean cargo shipper Matson, Inc. said it is moving quickly to fund improvements in its new Alaska operations following its May 29 acquisition of Horizon Lines' Alaska services.

News

South Korea Okays Casinos on Cruise Ships

South Korea has given the go-ahead for cruise ships to operate onboard casinos for foreign guests, , reports the Korea Joongang Daily newspaper.   South Korean

Victoria Celebrates Six Millionth Cruise Ship Passenger

Two tourists  -Victoria and Joseph Winthal - disembarking the Golden Princess Cruise Ship in Ogden Point have got an unexpected surprise.      They were selected

Cambodia: Anti-dredging Protests Heat Up in Koh Kong

The The Phnom Penh Post reported that activists have continued their campaign to drive out sand dredging companies from Koh Kong province’s Botum Sakor district,

Government Update

New Suez Canal Ready for Business

Suez Canal Authority (SCA) chairman Mohab Mamish officially called on international maritime navigation lines to use the New Suez Canal, scheduled to be inaugurated August 6.

South Korea Okays Casinos on Cruise Ships

South Korea has given the go-ahead for cruise ships to operate onboard casinos for foreign guests, , reports the Korea Joongang Daily newspaper.   South Korean

Super Yachts Give Boost to NZ Economy

New Zealand Customs Minister Nicky Wagner says mid-winter marks the end of another successful yacht season, with many of the remaining international yachts departing at the end of last month.

Logistics

New Suez Canal Ready for Business

Suez Canal Authority (SCA) chairman Mohab Mamish officially called on international maritime navigation lines to use the New Suez Canal, scheduled to be inaugurated August 6.

India Delays 24 LNG Shiploads from Qatar

India has deferred taking deliveries of at least 20 shiploads of expensive liquefied natural gas (LNG) from its main supplier Qatar and wants a rate cut matching

Dry Bulk Shipping Outlook Improving

The dry bulk market looks set for a solid show, although conditions remain more than challenging, analysts with Macquarie said in a note, reports WSJ.   As the

 
 
Maritime Security Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.1756 sec (6 req/sec)