Copenhagen: In a dramatic move that will change the container shipping landscape in a big way the world’s three biggest lines are coming together on the main east-west trades. Maersk Line, Mediterranean Shipping Company and CMA CGM have “in principle agreed to establish a long-term operational alliance on East – West trades, called the P3 Network”, according to a press release. “The aim is to improve and optimise operations and service offerings,” the grouping said.  
The P3 Network will operate a capacity of 2.6m teu, initially 255 vessels on 29 loops, on three trade lanes: Asia – Europe, transpacific and transatlantic.

While the P3 Network vessels will be operated independently by a joint vessel operating centre, the three lines will continue to have fully independent sales, marketing and customer service functions.

“Declining volume growth and overcapacity in recent years have underlined the need to improve operations and efficiency in the industry,” the press statement said. “This has prompted the creation of other operational alliances such as G6 and CKYH. Using the P3 Network the lines expect to be able improve their efficiency through better utilisation of vessel capacity.”
The lines intend to start operations in the second quarter of 2014, but the starting date will be subject to obtaining the approval of relevant competition and other regulatory authorities.

In addition, the establishment of the P3 Network is subject to the lines agreeing on definitive contracts. Finalisation and signing of the contracts is planned for the fourth quarter of this year.

“By doing this the big three are shaking out lesser lights in the liner universe,” a container analyst in Hong Kong told SeaShip News. “The economies of scale from bringing to market a grouping with more than 30% global marketshare will force others to merge just to stay in their slipstream. It is a game changer, and a clever way to cut out weaker operators.”