China Shipowners Association: P3 massive scale risks unfair competition
THE massive scale of the P3 mega alliance, binding the world's big three carrier into a coordinated global operation, has the China Shipowners Association (CSA) fearful that it will create unfair competition.
"Monopolising and manipulating rates in shipping markets is clearly forbidden and opposed in the global market economy," CSA vice-chairman Zhang Shouguo told Lloyd's List. "We have expressed worries to the relevant Chinese authorities over the possible negative impact that P3 could bring."
CSA, which includes Cosco and China Shipping, said it would monitor P3 members Maersk, MSC and CMA CGM for changes in market share when operations begin in the second quarter of 2014 if allowed by regulators.
The US Federal Maritime Commission has also voiced doubts about the P3, and plans to meet European and Chinese officials later this month to share its concerns.
Said Mr Zhang: "We will continue to gather opinions from our members. We will also pay strong attention to what foreign regulators and shippers think."
P3 will first deploy 252 ships, totalling 2.6 million TEI, in the Asia-Europe, transpacific and transatlantic trades, a scale never before seen in shipping, giving it an estimated 42 per cent on the Asia-Europe market share, 24 per cent on the transpacific and 40 per cent on the transatlantic trade.
