World News
U.S. Approval of P3 Likely, with Conditions
The U.S. Federal Maritime Commission (FMC) will probably approve the P3 alliance of the world's three biggest container shipping lines, but the approval will come with conditions, the Wall Street Journal reports.
The alliance, consisting of Maersk Line, CMA CGM, and Mediterranean Shipping Co. (MSC), will be required to ensure that fuel suppliers, smaller competitors, and freight forwarders are treated fairly.
"It is going to be a period of deliberations, where conditions on the P3 operations will be attached," one source told the newspaper.
"The FMC already sees this as more of a partnership rather than a merger, so if it gets the necessary safeguards for fair competition, the P3 will be approved."
European and Chinese regulators must also approve the alliance, but they are unlikely to do so until the FMC makes a decision, sources said.
Fuel suppliers have warned that the alliance could keep them from separately negotiating prices with the three companies, while smaller shippers and customers say the deal could also put them at an unfair disadvantage.
The P3 partners submitted new documents to the FMC last Friday in response to a request for more information issued in December.
When the regulators made their request, Commissioner William P. Doyle said it would allow shipping interests to have their concerns addressed.
The FMC now has 45 days to make a decision.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 523.50 | 6.50 | 613.00 | 6.00 |
| Rotterdam | 472.50 | 2.50 | 630.50 | 4.50 |
| Houston | 468.00 | 2.50 | 619.50 | 4.50 |
| Fujairah | 520.00 | 13.00 | 724.00 | 10.50 |
| Global 20 Ports Average | 539.00 | 1.00 | 720.00 | 3.00 |
| Global 4 Ports Average | 496.00 | 3.00 | 647.00 | 1.50 |
| Global Average Bunker Price | 572.50 | 2.00 | 765.00 | 3.00 |
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