Beijing scuppers shipping alliance
China says proposed alliance would control almost half of Asia-Europe container traffic
AP Moller-Maersk, Mediterranean Shipping Company and CMA CGM had hoped to form the so-called P3 Network to reduce costs on Asia-Europe, trans-Pacific and transatlantic routes by pooling 250 ships. Photograph: Getty Images/iStockphoto
China has scuppered a deal to create a shipping alliance on the world’s three biggest trade routes in a sign of the more muscular approach being taken by the country’s competition authorities.
China’s commerce ministry deemed the alliance was not in the public interest, saying it would control 47 per cent of container traffic on Asia-Europe routes, “greatly increasing market concentration”. Its rejection came despite approval from EU and US regulators.
– (Copyright The Financial Times Limited 2014)