A PYMNTS Company

Multinational: P3 shipping alliance ruffles feathers

 |  December 10, 2013

Plans for the establishment the so-called P3 shipping alliance have sparked outcry by the China Shippers Association, who has appealed the partnership between three of the world’s largest shipping firms to the State Development and Reform Commission.

The P3 alliance involves Denmark-based Maersk Line, Switzerland-based Mediterranean Shipping Co. and France-based CMA CGM, who are looking to form a joint venture that controls 40 percent of the globe’s major sea trade routes.

The partnership has ruffled feathers within the US as well as the nation’s Federal Maritime Commission decided to delay a vote to approve the alliance past last Friday’s deadline. The regulator now has an additional 45 days to mull the deal.

The alliance will require approval from authorities in the US, EU and China but is facing major hurdles. As the US weighs its concerns, the China Shippers Association has appealed to domestic regulators to block the deal.

Concerns within the EU have similarly appeared as the members of the P3 alliance are among several currently under investigation by the European Commission for price-fixing.

Regulators from the US, EU and China are set to discuss the alliance next week.

Full Content: Seatrade Global and Wall Street Journal

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.