Concern in China over Maersk Line-MSC Alliance

by Ship & Bunker News Team
Wednesday July 30, 2014

Chinese government and shipping interests are arguing that the proposed 2M container shipping alliance between Maersk Line and Mediterranean Shipping Co. (MSC) could cause problems, even as Maersk Line says the alliance could legally start operations in China any time, according to media reports.

Shang Ming, head of the Chinese Ministry of Commerce, said the alliance could reduce bargaining power for Chinese import and export businesses, industry news site Seatrade Global reports.

Zhang Shouguo, executive vice chairman of the Chinese Shipowners' Association (CSA) said Maersk Line and MSC could gain an advantage over Chinese container shipping lines.

Neither Zhang nor Shang said they object to the alliance, but they suggested that the two companies' total share of the market could be 27.9 percent globally and 35.8 percent in Asia.

As interested parties wait to see how Chinese authorities will react to the alliance, Maersk Line told industry news site ShippingWatch yesterday that 2M has the paperwork in place for the Chinese market and could, in principal, begin operating in Chinese ports today.

Many vessel sharing agreements (VSAs) like 2M are already in place in container shipping, and China only requires them to register with the Ministry of Transport, something Maersk Line spokesman Christian Storgaard says 2M has already done.

In practice, the alliance is still developing its setup and must also register the agreement with the US Federal Maritime Commission (FMC) and then wait for its approval.

"But the registration with the Chinese Ministry of Transport has been done in line with other VSA's that are registered before they launch their operations," Storgaard said.

The European Union (EU) does not have to approve 2M, but will monitor its operations in the market.

Maersk Line has said the 2M alliance will not face the same problems with Chinese authorities that the previously planned P3 alliance of Maersk Line, MSC, and CMA CGM did, partly because it is just a VSA without an operating company.