Today (17 June), the Chinese Ministry of Commerce (MOFCOM) has announced that it has not approved the P3 Network, a long-term operational vessel sharing agreement proposed by MSC, CMA CGM, and Maersk Line.
MOFCOM’s decision follows a review under China's merger control rules.
In a statement, the P3 partners said that they had taken note of and respected MOFCOM’s decision, and have subsequently agreed to stop preparatory work on the P3 Network – meaning the network will not come into existence.
“In Maersk Line we have worked hard to address the Chinese questions and concerns, so of course it is a disappointment,' said Vincent Clerc, chief trade and marketing officer at Maersk Line.
'P3 would have provided Maersk Line with a more efficient network and our customers with a better product,' he noted. 'We are committed to continuing to be cost competitive and offer reliable services.'
The lack of implementation of the P3 Network will have no material impact on the Maersk Group’s expected result for 2014, the company confirmed.
“The decision does come as a surprise to us, of course, as the partners have worked hard to address all the regulators’ concerns,' added group CEO Nils Andersen. 'The P3 alliance would have enabled Maersk Line to make further reductions in cost and CO2 emissions and not least improve its services to its customers with a more efficient vessel network. Nevertheless, I’m quite confident Maersk Line will accomplish those improvements anyway. It has delivered on those improvements over the last five quarters in the absence of P3 and I’m confident it will continue to do so.'
The news comes as a particular surprise given the fact that, in March, the US Federal Maritime Commission (FMC) decided to allow the P3 Network agreement to become effective in the US, and on 3 June 2014, the European Commission informed the P3 partners that it had decided not to open an antitrust investigation into P3.
