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Drewry: EU will accept bigger alliances

Even though P3's market share with Maersk Line, MSC, and CMA CGM will exceed the EU's consortium guidelines, the alliance will be approved as long as it can deliver clear benefits for customers, and as long as the P3 alliance does not abuse its market dominance, says Drewry.

Photo: SØLBECK CHRIST

The EU Commission, which has for decades acted as hardliners in terms of the close collaborations between container carriers, will be prepared to accept the expansive P3 network alliance between Maersk Line, MSC, and CMA CGM, even though P3 could potentially get a dominant position with a market share exceeding 30 percent, the EU's upper limit in the so-called consortium guidelines.

But an EU acceptance would hinge on the alliance delivering clear-cut benefits for customers - shippers - and that the carriers do not abuse the dominant market share, says analysts Drewry on Monday in its weekly newsletter Container Insight, citing industry sources.

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