World News
FMC Points to Reduced Bunker Consumption as it Backs P3 Alliance
The U.S. Federal Maritime Commission (FMC) has voted in favour of the P3 Network Vessel Sharing Agreement, saying reduced bunker consumption was a benefit of the alliance.
"I am in favor of not taking any further action to delay the implementation of the P3 Network Vessel Sharing Agreement," announced FMC Commissioner William P. Doyle in the written statement.
Approval of the planned alliance between Maersk Line, Mediterranean Shipping Company S.A. (MSC), and CMA CGM had been delayed following concerns over competitiveness and customer service as a result of its unprecedented size.
However the FMC says it has now been determined that the P3 Alliance would not result in an unreasonable increase in transportation service or costs, but it would nevertheless put a monitoring program in place to help ensure that the P3 parties "play by the rules."
In making its decision, FMC noted that P3 would lead to "significant environmental benefits" including a substantial lowering of bunker consumption as a result of more efficient vessel routing.
A further reduction in bunker consumption estimated to be around 9 percent will also be made as the P3 players intend to update their fleet with more fuel efficient eco-ships, the FMC said.
UK based trade association Global Shippers Forum (GSF) said in January the P3 Alliance could end up hurting competition and pushing shippers' costs up.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 565.50 | 6.00 | 661.50 | 4.00 |
| Rotterdam | 510.00 | 2.00 | 661.00 | 2.00 |
| Houston | 548.00 | 2.50 | 666.50 | 0.50 |
| Fujairah | 555.50 | 5.00 | 746.00 | 2.50 |
| Global 20 Ports Average | 582.50 | 1.50 | 753.00 | 1.50 |
| Global 4 Ports Average | 544.50 | 3.00 | 683.50 | 1.00 |
| Global Average Bunker Price | 631.00 | 2.50 | 803.50 | 2.00 |
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