EMEA News
EU Supports P3 Alliance
The planned P3 container shipping alliance will improve service and help European carriers compete against Chinese companies, Siim Kallas, vice president of the European Commission, told industry news site ShippingWatch.
"I believe the alliance represents innovation as it aims at rationalising services and there are multiple issues where they can offer a better service to customers," Kallas said.
"We are facing very fierce global competition and of course volumes matter, that's why China is so strong, they are simply a very big client as well for shipping, and for various raw material producers.
"And of course you also need some very big players in order to compete."
EU regulators will join their counterparts from the U.S. and China to discuss the proposed alliance of Maersk Line, Mediterranean Shipping Co. (MSC), and CMA-CGM on December 17.
Kallas said the Chinese government subsidises the shipping sector with funding for shipyards and state-subsidised cargo, hurting competitors from other countries.
"China is a very serious and very aggressive competitor, in this context P3 is very interesting because no one else can actually ensure the position of European shipping in the globalization," he said.
Kallas said his only concern about the alliance is its potential effects on European ports, since a major shipping player might have enough leverage to push port fees downward.
"We will probably have to guarantee a fair competition to make sure that such a big volume will not force ports out of the market," he said.
"But considering this, to ally global European forces, I think it's a good idea."
U.S. regulators said last week they are seeking more information from the P3 parties, delaying the approval process in that country, while the Chinese Shipowners' Association said last month that it does not consider P3 a threat as long as the participants comply with relevant regulations.
