P3 Alliance will Enter Service in April
There is concern in users around the world because it could become an oligopoly that do not allow them greater choice and raise fares substantially.
The worrying P3 Alliance, formed by three of the most important shipping companies in the world, will begin operation in April, with the pretext of achieving economies of scale in a business so hit in recent years. will begin operation in April, with the pretext of achieving economies of scale in a business so hit in recent years The uncertainty of the consequences of this Alliance, makes relevant the article of El Pais of Spain, cited by Mundo Maritimo, that we transcribe below:
The different agents of the maritime sector have already occupied analyzing the consequences of the P3 Alliance, without that it’s still possible to advance on the consequences of a strategy of such magnitude: three of the largest global shipping companies, Maersk Line, Mediterranean Shipping Company and Compagnie Maritime d’Affretement-Compagnie Générale Maritime (CMA-CGM) have agreed to provide among all, more or less 255 vessels with capacity of 2.6 million containers in 27 services between Asia and Europe, in the Pacific and the Atlantic, in order to improve offer services and optimize operations.
The message has been received is the P3 Alliance sits on pillars that respect the industry, competition, and regulatory standards. This Alliance created with the aim of “optimizing the range of operations and services” and will offer “more ports of call, greater number of weekly services as well as the reduction of service interruptions caused by the cancellation of outputs”. Of course, a joint pricing the three shipping companies have already clarified that this network will be operated independently and each company will have their own channels of salespolicy is expressly excluded away all ghost of past “maritime conferences” that were censured by Brussels, the three shipping companies have already clarified that this network will be operated independently and each company will have their own channels of sales, marketing and customer service tasks.
P3 Alliance has announced that it will create a Joint Operating Center of ships to be called JVOC based in London with another satellite in Singapore. With the information available, the operation of the network or P3 Alliance seems to conform to the rules of the competition. From the shipping part of this Alliance refuses to be before anything like a monopoly since the European Union adopted a block exemption for consortia regulation in 2010 for a period of five years that it set at 30% the threshold of market share for members to conferences and 35% for those who are not. These quotas are being thoroughly tested in Brussels since this partnership will be very guarded not only by the EU, but also by the authorities of the USA and China.
In the business of shipping companies, the corebusiness is transport, but this Alliance will influence other collateral businesses very solid form linked to the exploitation of vessels and the handling of the containers (alinear a la izquierda). From the perspective of the shippers, the Asian Shippers Meeting and the European Shippers Council express their concern that “this cooperation should not influence the freedom of choice for shippers and price-based competition, the level of service and routes”. So forceful was showed at its annual meeting in Brussels after meeting the strategic agreement between the triumvirate of the major global shipping companies, which this partnership will control 37% of the world market share.
In terms of ports, in the sector are identified Rotterdam and Port Klang as the big losers and Antwerp and Wilhelmshaven as the possible beneficiaries of this P3 Alliance. In Spain, apart from the possible decrease in weekly scales that can be expected in some ports, the size of these container requires a dimension and port facilities that not have all the Spanish ports. According to information provided by MSC, the port of Algeciras will be part of at least four services of the P3 Alliance. In the opinion of the Chairman of the port authority of Algeciras, Manuel Morón, “the battle of the container has done no more than start. The final stage is still not fixed”. In a worse position would be the port of Valencia, where the P3 Alliance, as confirmed by President Rafael Aznar, “isn’t going to scale larger in Asia – Northern Europe traffic”.
The President of Puertos del Estado of Spain suggested should still listen to the competent authorities before it enters service Alliance P3. The reactions from the rest of the shipping companies also have become expected: the members of the G6 (Hapag-Lloyd, NYK, OOCL, Hyundai Merchant Marine, APL and MOL) are planning to expand their transatlantic routes and Asia-United States to challenge the P3,shipping companies members are quick to clarify that the operation is still in development phase and before should be validated by European, Chinese and US authorities its goal being to grow using a network of 240 ships to connect 66 ports through 29 services, faced with the 252 ships, 90 ports and 28 services offered by P3 Alliance. Although it seems that the P3 Alliance will enter service in April 2014, shipping companies members are quick to clarify that the operation is still in development phase and before should be validated by European, Chinese and US authorities.