Surprising P3-support from Chinese shipowners

The Chinese Shipowners' Association (CSA) will not have trouble supporting the P3 alliance if it complies with the rules of the market, CSA vice president Zhang Shouguo tells ShippingWatch.

Photo: APM Terminals

The world's largest container collaboration between Maersk Line, MSC, and CMA CGM - the P3 alliance - is supported by the Chinese shipowners, whom many have otherwise considered to be the biggest potential opponent of the alliance.

But in an interview with ShippingWatch, vice president of the Chinese Shipowners' Association (CSA) Zhang Shouguo states that the Chinese shipowners will support the alliance if it just complies with the common rules of the market, so that the collaboration does not hurt the competition.

"Alliances are a common practice in the container industry. If the P3 alliance complies with the rules, works to reduce the costs, and doesn't have a negative effect on the competition, we won't be against it. The problem arises if the it turns out that P3 takes over control of the industry. So we'll watch the developments very closely if the alliance becomes operational," Zhang Shouguo tells ShippingWatch.

Do you want to stay up to date on the latest developments in International shipping? Subscribe to our newsletter – the first 40 days are free

Threat to the Chinese

Several well-informed sources in the container industry whom ShippingWatch has spoken to have previously pointed out that the Chinese competition authorities would likely find it difficult to approve P3, as the alliance could first of all be seen as a threat to the Chinese container carriers that are not part of alliances. The Chinese competition authorities will meet with competition authorities from the United States (Federal Maritime Commission) and the EU (EU Competition Authority) in Washington, DC, one week before Christmas to discuss the perspectives of P3.

FMC chairman: P3-alliance is something very unique

Last week, senior executives of the three carriers visited Washington, DC, to meet with FMC Chairman Mario Cordero, who has previously spoken to ShippingWatch about the delicate balancing act required if and when the alliance gets a "Go!" from China and the United States. EU will also participate in the meeting, though it will not have to approve the alliance before its launch, scheduled for the 2nd quarter 2014.

Worried about abuse

Like Mario Cordero, the Chinese shipowners express "concerns" about the perspectives of the alliance, which will account for close to one third of all container traffic at sea.

"Our concerns relate to whether they will abuse their position," says Zhang Shouguo.

The EU has just received its invitation to the summit, which is how the FMC refers to the P3 meeting, and the EU has already announced that it will participate in the meeting.

Do you want to stay up to date on the latest developments in International shipping? Subscribe to our newsletter – the first 40 days are free

US port workers reject the P3 alliance

Asian shippers join the chorus of P3 opponents

P3 partners conquer large market shares

The P3 alliance: Here is an overview  

More from ShippingWatch

SDK Freja anticipates steep earnings drop following record year

Logistics company SDK Freja, which delivered record financials with great advancement on top and bottom lines, takes a more gloomy view of the current fiscal year due to several ”external factors.” However, the growth target remains the same, CEO tells ShippingWatch.

LNG carriers concerned about increasing ship prices

The price on new LNG vessels has soared vigorously, and for Flex LNG this has meant a withdrawal from the market for new ships. Such was the statement by Flex LNG’s chief exec at Marine Money in New York, where he also announced new long-term charter agreements.

Maersk ships delayed up to three weeks on US east coast

Bottlenecks at major container ports on the US east coast have entailed that Maersk vessels are affected by delays of up to three weeks. It’s a combination of congestion, many ships, and a lack of container space, Maersk says.

Further reading

Related articles

Latest news

See all jobs