CHINA'S Ministry of Commerce (MofCom) has begun consulting shipping industry groups in its antitrust review of P3, the proposed mega-alliance between the world's top three container lines, but the final decision will not be made before May, according to multiple industry sources.
That could jeopardise plans by Maersk Line, Mediterranean Shipping Co (MSC) and CMA CGM to start joint operations during the second quarter of the year, although the trio always said that the start date was subject to obtaining regulatory approval, according to UK's Lloyd's List.
The groups contacted by the ministry in recent weeks include the China Shippers' Association, China Shipowners' Association, China Ports & Harbours Association and Shanghai Shipping Exchange.
"In a letter addressing the four industry groups, MofCom asked for a reply in writing by January 10 on our individual views of P3," said vice-chairman of China Shippers' Association Cai Jiangxiang. The association lobbied the authorities to block the consortium before the formal consultation.
"We estimate P3 to obtain over 60 per cent market share in China's exports to Europe. We don't believe P3 partners would not seek price fixing once the operation goes online," Mr Cai told Lloyd's List.
The alliance partners intend to operate a combined fleet of 250 ships totalling 2.6m TEU, deployed on 29 loops in the Asia-Europe, transpacific and transatlantic trades. Together, they would have a market share of 50 per cent on the Asia-Europe corridor and 30 per cent on the Pacific, according to some estimates.
As of mid-December, China's competition authority had demanded additional material from P3 members and they had yet to file, according to a source who took part in the China delegation to Washington where US, European Union and Chinese authorities held a summit to discuss global alliances such as the proposed P3 Network in December.
The Federal Maritime Commission in Washington is also still waiting to hear back from the P3 trio after requesting additional information. Once replies are received, a 45-day review period will commence.
China Ports & Harbours Association was also wary of P3 as the tie-up would disadvantage the bargaining power of China ports, according to the China delegation source. Lloyd's List could not seek comment from the association.
Shanghai Shipping Exchange said it was neither against nor for P3 at the current stage. "Many lines, in or outside of alliances, are our members. We won't hurt the interests of our members. However, neither will we allow some members to hurt the interests of others," an SSE spokesperson told Lloyd's List.
WORLD SHIPPING
05 February 2014 - 22:54
Beijing starts antitrust review of P3 alliance, decision likely after Q2
CHINA'S Ministry of Commerce (MofCom) has begun consulting shipping industry groups in its antitrust review of P3, the proposed mega-alliance between the world's top three container lines, but the final decision will not be made before May, according to multiple industry sources.
WORLD SHIPPING
05 February 2014 - 22:54
Beijing starts antitrust review of P3 alliance, decision likely after Q2
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