One might think that the P3 alliance and its competitors - CKYHE and G6 - would be good news for the Korean shipyards, but that is not the case, says Asiasis. By forming joint vessel purchases, the alliances could put pressure on the yards.
"Normally, newbuilding contracts are signed led by shipowners. With P3 suggesting joint vessel purchases and so on, there will be the owners' greater negotiation power on the contract. This will bring a hard hit to Korean shipbuilders as current balance between supply and demand will be broken," says Korean attorney Kim Sung-Man.