World News
US Approval of 2M Alliance is a Formality, Says Maersk
Nils Anderson, CEO of AP Moeller Maersk, yesterday said he expected U.S. regulatory approval by the Federal Maritime Commission (FMC) to be granted for the proposed 2M container shipping alliance, Reuters reports.
"We believe that the approval should be a formality as they had already approved P3," said Anderson, but he would not be drawn on how quickly this would be given.
2M is the name given to the proposed alliance between Maersk Line and Mediterranean Shipping Co. (MSC) to operate a combined fleet on key global container shipping routes.
The proposed alliance is said to be an opportunity to cut costs, reduce fuel consumption, and lower emissions.
P3, the previously proposed alliance of Maersk Line, MSC and France's CMA CGM, required the backing of U.S., EU and Chinese authorities, but failed after only securing approval from the former two.
It has been noted that 2M is a substantially smaller alliance than P3, with many commentators hoping it will bring greater stability to shipping prices, though a tie up between the world's two largest container shipping companies has worried others.
Indeed, fears of a shipping monopoly are widely believed to have weighed heavily on the decision by China's Commerce Ministry to refuse the P3 proposal.
Following the failure of the P3 alliance, CMA CGM is now a party involved in the proposed Ocean Three group, which recently said slow steaming would achieve $1 billion in cost efficiencies for the venture.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 571.50 | 0.00 | 665.50 | 1.00 |
| Rotterdam | 512.00 | 3.00 | 663.00 | 0.50 |
| Houston | 545.50 | 3.00 | 666.00 | 9.50 |
| Fujairah | 560.50 | 0.00 | 743.50 | 1.50 |
| Global 20 Ports Average | 584.00 | 1.00 | 751.50 | 2.00 |
| Global 4 Ports Average | 547.50 | 0.00 | 684.50 | 2.50 |
| Global Average Bunker Price | 633.50 | 0.50 | 805.50 | 0.00 |
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