The world’s three largest shipping firms – Maersk Line, Mediterranean Shipping Company and CMA CGM – decided to form a grand alliance, named P3 Network, by the second quarter of 2014.
However, the alliance is subject to regulatory and government approval.The alliance would pool the vessels of the three companies, equivalent to 15 per cent of global capacity, on three routes: Asia-Europe, trans-Pacific and transatlantic.
While Maersk Line will provide about 42 per cent of the alliance’s capacity – including its new Triple E ships, the world’s largest – while MSC will contribute 34 per cent and CMA CGM, 24 per cent.
The decision to form alliance is reportedly an outcome of the overcapacity and volatile rates in the shipping industry. Prices on the key Asia-Europe route have fallen by as much as 70 per cent in the past 12 months and in most markets ships are operating below cost.
The three groups combined operate about 37 per cent of total global container capacity, according to industry analysts Alphaliner.
The privately owned CMA CGM of France already has a limited operational alliance with Swiss-based MSC, which was announced in late 2011, and a more recent, smaller deal with Maersk.
All vessels will continue to be owned by the individual lines, which will maintain their own sales, marketing and customer services operations, reports indicate.
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