K + N says P3 will sail by regulators, but won't affect freight rates
KUEHNE + NAGEL is expecting the P3 shipping alliance of the world's largest shipping lines, Maersk Line, Mediterranean Shipping Co (MSC) and CMA CGM, will be launched by the second quarter of 2014 as planned, providing they gain the relevant regulatory approval.
The Switzerland-based logistics and freight forwarding giant also foresees that freight rates will not change in the short-term.
The goal of the P3 alliance partners is to pool vessels and capacity by establishing a joint vessel operations centre in London, meanwhile retaining fully independent sales, marketing and customer service functions.
Said K + N executive vice-president air logistics Tim Scharwath: "We assume that P3 will go ahead and start, as they announced it. We do not think there will be too many difficulties with the European Union and other countries.
"We have similar alliances formed in the past, the G6 for example, and when that was implemented nothing really changed for us. The alliance was there and we worked together with them, and the rates since then have been volatile.
"The P3 lines are a bit larger but we expect that the same will happen, we don't see anything materially happening on the rates until the overcapacity has gone and we don't foresee that until 2015."
K + N's ocean container volumes stood at 1.7 million TEU in the first half of the year, an increase of three per cent compared to the same period a year earlier.
Within this total Asia Pacific-Europe volumes amounted to 624,000 TEU. It handled 232,000 TEU on the Asia Pacific-North America trades, and intra-Asia volumes came to 124,000 TEU.
The company still expects to achieve four to six per cent growth in ocean freight volumes in 2013, twice that of the market, despite first half volumes slowing to "moderate" growth in May and June, after a strong increase in ocean freight during April.
First half turnover across all business divisions rose by 3.3 per cent to CHF10.4 billion (US$11 billion) and gross profit was up by 2.6 per cent to CHF3.1 billion.
KUEHNE + NAGEL is expecting the P3 shipping alliance of the world's largest shipping lines, Maersk Line, Mediterranean Shipping Co (MSC) and CMA CGM, will be launched by the second quarter of 2014 as planned, providing they gain the relevant regulatory approval.
The Switzerland-based logistics and freight forwarding giant also foresees that freight rates will not change in the short-term.
The goal of the P3 alliance partners is to pool vessels and capacity by establishing a joint vessel operations centre in London, meanwhile retaining fully independent sales, marketing and customer service functions.
Said K + N executive vice-president air logistics Tim Scharwath: "We assume that P3 will go ahead and start, as they announced it. We do not think there will be too many difficulties with the European Union and other countries.
"We have similar alliances formed in the past, the G6 for example, and when that was implemented nothing really changed for us. The alliance was there and we worked together with them, and the rates since then have been volatile.
"The P3 lines are a bit larger but we expect that the same will happen, we don't see anything materially happening on the rates until the overcapacity has gone and we don't foresee that until 2015."
K + N's ocean container volumes stood at 1.7 million TEU in the first half of the year, an increase of three per cent compared to the same period a year earlier.
Within this total Asia Pacific-Europe volumes amounted to 624,000 TEU. It handled 232,000 TEU on the Asia Pacific-North America trades, and intra-Asia volumes came to 124,000 TEU.
The company still expects to achieve four to six per cent growth in ocean freight volumes in 2013, twice that of the market, despite first half volumes slowing to "moderate" growth in May and June, after a strong increase in ocean freight during April.
First half turnover across all business divisions rose by 3.3 per cent to CHF10.4 billion (US$11 billion) and gross profit was up by 2.6 per cent to CHF3.1 billion.