U.S. Approval for 2M Anticipated by Late November

The alliance is expected to start operations next year

The planned 2M alliance between the world's two largest container shipping lines is likely to win approval from the U.S., the only nation requiring it to go through antitrust authorities, by late November, the South China Morning Post reports.

However, the U.S. Federal Maritime Commission (FMC) is likely to seek more information from the two carriers, Maersk Line and Mediterranean Shipping Co. (MSC), before giving it the OK.

"The chances for 2M to be approved are very good, since the commission voted four-to-one in favour of the more concentrated [P3] merger last time," a U.S. source close to the matter said.

"However, similar to the approval of P3, there will in all likelihood be strings attached to 2M.

"There will be requests for more information as well as answers to questions required, with the earliest approval date late November."

Four of the FMC's five commissioners voted to approve P3, the alliance that would have included CMA CGM as well as Maersk Line and MSC, before Chinese authorities blocked it from moving forward.

The source said the FMC will give extra scrutiny to 2M because its timeframe is 10 years, double the lifespan of existing container alliances, and because it will operate extra-large ships of as much as 19,200 twenty-foot equivalent units (TEUs).

The alliance does not need the approval of Chinese antitrust authorities because, unlike P3, it is a pure vessel-sharing alliance without an operating company.

As part of the alliance, which is scheduled to start early next year, MSC is expected to lease five Triple E-size containerships recently ordered by Scorpio Group and China's Bank of Communications Co.