Asia/Pacific News
P3 Collapse Will Mean a Greater Focus on Fuel Efficiency
The unexpected collapse of the planned P3 shipping alliance means ship owners must turn their focus toward fuel efficient vessels, a South Korean analyst said, according to Korea JoongAng Daily.
"The cancellation of the P3 means the shipping market has entered a stage of complete, ruthless competition," Park Moo-hyun, a researcher at E*Trade Securities.
"Now, aggressive investment in fuel efficiency will be the only way to survive."
Korean shipping companies expressed relief over the Chinese Ministry of Commerce's decision not to allow Maersk Line, CMA-CGM, and Mediterranean Shipping Co. (MSC) to move forward with the cooperative agreement.
"It's certainly good news rather than bad news for us," said a spokesman from a major South Korean shipping company.
Analysts said the three major companies will still come up with alternative strategies to improve their competitive position.
Chinese authorities said the alliance would have posed too great a danger to competition in the shipping markets.
