P3 Global Alliance between Maersk Line, CMA-CGM, and Mediterranean Shipping
The U.S. Federal Maritime Commission has called for a Global Regulatory Summit on the proposed P3 Global Alliance of the world’s three largest container carriers, Maersk Line, CMA-CGM, and Mediterranean Shipping.
The three carriers announced they would begin cooperating in 2014 on routes covering Asia to Europe as well as transpacific and transatlantic routes to the United States.
Early estimates by Maersk Line’s chief trading and marketing officer put market control of such an alliance at about 42 percent on the Asia to Europe route, 24 percent on the transpacific routes, and 40 – 42 percent on the transatlantic route.
Indications are that the P3 network will be operated from new management offices in London and Singapore with a staff of approximately 200. The proposed Alliance has already named Maersk Line’s Lars Mikel Jensen as its Chief Executive Officer.
Joining in the call for the Summit is Commissioner William P. Doyle, who stated: “One of my concerns relates to media reports that a combined east-west fleet of 346 vessels will be reduced to 255 vessels once the proposed Alliance is consummated. I am interested in learning more about the impact this Alliance will have on services provided to consumers, shippers and U.S. terminal operations.”
Commissioner Doyle added, “Maersk Line, Limited is the largest U.S.-flag carrier in the international fleet. To this end, I do not want the Alliance’s operations to harm or otherwise negatively impact the U.S.-flag international fleet when decisions are made to cascade or otherwise eliminate ships from service.”