Giant Mearsk-led P3 Network rollout put off after China’s move

Thursday, 19 June 2014 00:00 -     - {{hitsCtrl.values.hits}}

The planned P3 network will not be implemented following an announcement by the Chinese Ministry of Commerce (MOFCOM) that they have not approved the P3 Network (P3). The MOFCOM’s decision follows a review under China’s merger control rules. The P3 partners take note of and respect MOFCOM’s decision. Subsequently, the partners have agreed to stop the preparatory work on the P3 Network and the P3 Network as initially planned will not come into existence. Franck Dedenis, Managing Director for Maersk (India and Sri Lanka), said: “P3 would have provided Maersk Line with a more efficient network and our customers with a better product. Nevertheless, as a company we remain committed to the Sri Lankan market and will continue to service our customers with our existing bouquet of services out of Lanka.” On 18 June 2013, Maersk Line, MSC Mediterranean Shipping Company S.A. and CMA CGM announced their intention to establish a long-term operational vessel sharing agreement on the East – West trades, called the P3 Network (P3). The overall aim with P3 was to make container liner shipping more efficient and improve service quality for the shippers due to more frequent and reliable services. P3 was intended to be an operational, not a commercial, cooperation. On 24 March, the US Federal Maritime Commission (FMC) decided to allow the P3 Network agreement to become effective in the US, and on 3 June, the European Commission informed the P3 partners that it had decided not to open an antitrust investigation into P3 and had closed its file. P3 was scheduled to start operations in the autumn of 2014.