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SeaIntel: The P3 alliance resembles a shotgun wedding

CMA CGM's interest in the P3 alliance with Maersk Line and MSC alongside parallel negotiations with a series of other carriers illustrates the current state of the container industry. "It's a shotgun wedding," says SeaIntel.

When French CMA CGM, as reported by ShippingWatch yesterday, Monday, negotiated with several parties about various alliances during the spring of last year, this fact merely illustrates the highly strained state that many container carriers have found themselves in for years, says CEO and partner at SeaIntel, Lars Jensen, and his description of the alliance does not give the collaboration between the three major European carriers the best starting point:

"That the carrier considered other prospects than P3 does not come as a surprise. I will likewise assume that other constellations have been - and are - on the table among other carriers. It's a natural consequence of the need for consolidation that is gradually becoming clear. This is because most carriers are under pressure in terms of profits due to the overcapacity, and are thus forced to consider collaborations, not because they want to, but because they have to. P3 can probably best be described as a shotgun wedding, and not as an ideal situation for any of the partners. But on the other hand, it's clear that now, as they've acknowledged the necessity, they're going all-in in terms of ensuring the success of the alliance," Lars Jensen tells ShippingWatch.

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