China to Keep Close Eye on 2M Alliance

Maersk Line and MSC are said to have a combined market share of 35 percent on key Asia to Europe routes. 

Chinese regulators will be keeping a close watch on the 2M alliance between Maersk Line and Mediterranean Shipping Co. (MSC) over fears of a trade lane monopoly when it launches in January, reports Joc. 

“Given their current capacity, Maersk and MSC’s market shares in Asia - Europe routes will be over 30 percent,” said Zhang Shouguo, vice president of the China Shipowners’ Association.

Zhang said that if the two companies, which on their own are the world's largest and second-largest shipping companies respectively, don't reduce their market share to below 30 percent, they are likely to prompt a government investigation. 

Under Chinese marine regulations, non-Chinese container lines may not control more than 30 percent of the market share on any major China trade lines. 

An analysis of the two companies puts Maersk's and MSC's combined market share at 35 percent. 

Maersk China Senior Director Jens Eskelund said that the company has already filed the required documents with Chinese authorities. 

“In China, we have an obligation to file VSA’s with authorities, but there is no approval procedure as such,” he said. 

However, China is said to be hyper vigilant in preventing any shipping alliance from monopolizing trade routes, as evidenced when it vetoed the P3 alliance which would have united Maersk and MSC with the world's third largest carrier, CMA CGM. 

The 2M deal has already received approval from U.S. and European regulators. 

Other bodies have also raised concerns over the alliance, including the chairman of the European Shippers' Council, who said that it could potentially be damaging to world trade.