World News
Maersk: No Commercial Cooperation in P3 Network
The collective market share of the three major carriers that are joining together in the new P3 Alliance is not a meaningful figure because the companies will not cooperate commercially, Jakob Stausholm, senior vice president of AP Moller-Maersk Group, Seatrade Global reports.
"There is some confusion over the market share because the key thing to understand is that there is no commercial cooperation, so our market share will still be around 14-15% globally, and a little bit higher on the Asia-Europe (trade), so aggregating our market share does not make a lot of sense," Stausholm told Seatrade Asia Week.
Analysts have noted that collectively the three carriers, Maersk Line, CMA CGM, and Mediterranean Shipping Co. (MSC), represent 45 percent of the global market.
"We have always been, and will always be, fierce competitors," Stausholm said.
He said P3 is devoted to sharing infrastructure and operating vessels efficiently to reduce the effects of overcapacity in the container shipping market.
However, Frank Lu, chairman and CEO of Yang Ming Marine Transportation Corp. (Yang Ming), said an alliance should not represent more than 30 percent of the world's market share.
"We have no objection on alliances and cooperation, but there should be a need for companies to observe global rules as the regulatory authorities would also want a level playing field based on the spirit of free trade," Lu said, speaking at the World Shipping (China) Summit 2013 last week.
Yang Ming is part of another alliance, known as CKYH Alliance, which also includes Cosco, K Line, and Hanjin Shipping.
The U.S. Federal Maritime Commission (FMC) said recently that P3's size raises concerns about competitiveness.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 504.50 | 2.50 | 620.00 | 3.00 |
| Rotterdam | 456.00 | 1.50 | 621.50 | 2.00 |
| Houston | 476.00 | 7.00 | 624.00 | 1.00 |
| Fujairah | 496.50 | 2.00 | 713.00 | 2.50 |
| Global 20 Ports Average | 526.50 | 0.50 | 712.00 | 0.50 |
| Global 4 Ports Average | 483.00 | 2.00 | 644.50 | 0.50 |
| Global Average Bunker Price | 570.50 | 1.50 | 751.00 | 1.00 |
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