Americas News
FCS: Unprecedented Size of P3 Alliance Raises Regulatory Concerns
The unprecedented size of the P3 container shipping alliance raises concerns about competitiveness and customer service, despite potential benefits, Mario Cordero, chairman of the U.S. Federal Maritime Commission (FMC), has told the industry news site ShippingWatch.
"My concerns lie in the fact that this agreement is very unique both in size and scope," Cordero said.
"The world´s largest container carriers are joining forces and that raises regulatory concerns.
"Our objective is to analyze if this agreement will reduce competition or limit services and in the end impose unreasonable increases in costs to customers."
The FMC has called for regulators from the U.S., Europe, and China to meet to discuss the issues involved, a summit that ShippingWatch says could take place in the U.S. in December.
Sources told the news site that the planned launch of P3 in Q2 2014 may be optimistic because of the time needed for regulatory review.
Cordero said the FMC must consider how U.S. businesses would be affected by the alliance of Maersk Line, MSC, and CMA CGM, but there are also benefits to be considered.
"These could be how this alliance can achieve better efficiency and reduce costs which can be transferred to the end user," he said.
"I can also see environmental benefits by deploying lager vessels.
"Now, the pros and cons must be balanced."
The alliance of the world's three largest container lines was first announced in June, and Lars Michael Jensen, former trade manager for Maersk Line, has been named the future CEO of the P3 Network Center.
