World News
US Extends 2M Talks While it Consults China
A U.S. Federal Maritime Commission (FMC) review of the 2M proposal between Denmark-based A.P. Moller-Maersk's Maersk Line and Switzerland's Mediterranean Shipping Co (MSC) is likely to be extended while the U.S. authorities consult China over the deal, The Loadstar reports.
The deal would allow the world's two largest container lines to make significant savings on their operating costs.
FMC commissioner William Doyle told the Wall Street Journal that the review would likely see a 45-day extension on top of the time that has already passed from the original review.
The period would allow the FMC to pose additional questions to both companies on 2M and allow Doyle time to consult Chinese officials during a meeting scheduled for early November in Shanghai.
Maersk had previously said that the deal only required submission of papers to the Chinese and European Union, and expected FMC approval would be a "formality".
The FMC had already previously approved the similar but more ambitious P3 deal that also involved the world's third largest container line CMA CGA.
At the time, the alliance gave the companies a 23 percent capacity share between the U.S. and Asia, compared to the current deal's 15 percent.
That deal however, was shut down by Chinese regulators earlier in June on competition concerns, something commentators say could lead to the FMC to more vigorously review the proposal's second reiteration.
Maersk executives also visited two Chinese ministry officials late last week in hopes of smoothing the regulatory process.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 547.50 | 2.50 | 679.50 | 0.50 |
| Rotterdam | 513.50 | 0.00 | 652.00 | 1.00 |
| Houston | 547.00 | 3.50 | 679.00 | 0.50 |
| Fujairah | 544.00 | 4.50 | 747.50 | 1.00 |
| Global 20 Ports Average | 574.50 | 1.00 | 760.50 | 0.50 |
| Global 4 Ports Average | 538.00 | 2.50 | 689.50 | 0.00 |
| Global Average Bunker Price | 626.50 | 0.00 | 804.50 | 0.50 |
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