World News
China Warns Maersk and MSC: We Need Alliances, but We Also Need Competition
The China Shipowners' Association, who previously spoke against the now failed P3 alliance, has conceded that the industry needs to form alliances in order to improve efficiency, but warned this must not come at the expense of reduced competition, Sino Ship News reports.
"Alliances are necessary for the shipping industry to improve efficiency and services, however competition is needed," said Zhang Shouguo, director of China Shipowner's Association.
The P3 alliance of Maersk Line, France's CMA CGM SA, and Switzerland-based Mediterranean Shipping Co. (MSC) was blocked by China in June, having been approved by U.S. and European Union (EU) regulators.
However, this was not seen as meaning China would necessarily also block the new 2M shipping alliance between Maersk Line and Mediterranean Shipping Co.
"The cooperation model of 2M is different from P3," said Zhang.
"China didn't support the establishment of P3, it is hard to say whether the Chinese government will approve 2M or not."
In October the U.S. Federal Maritime Commission (FMC) gave its approval to 2M.
CMA CGM SA (CMA CGM) meanwhile, announced in September its intention to form a new alliance with China Shipping Container Lines Co. (CSCL) and United Arab Shipping Co. (UASC).
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
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