Top shippers Maersk, MSC attempt new sharing agreement

The world's top two container shippers, Maersk Line and MSC Mediterranean Shipping, have struck a fresh vessel-sharing agreement after a previous three-way pooling deal known as P3 was undone by China's failure to approve it.

Maersk and MSC say sharing vessels cuts costs, fuel usage and emissions. But critics, including those sending cargo, fear the shippers could dominate key trade routes carrying consumer goods around the world.

Analysts said the shippers had a better a chance of gaining Chinese approval with the latest deal because it involves fewer ships and volumes of goods and is structured differently.

Yesterday, MSC and AP Moller-Maersk, the parent company of Maersk Line, said 185 vessels would be shared, including 20 of Maersk’s giant Triple-E ships, with an estimated capacity of 2.1 million 20-foot equivalent units (TEU).

They will run the trans-Atlantic, trans-Pacific and Asia-Europe routes, critical paths in the global trade of goods.

Last year’s deal – between Maersk, MSC and France’s CMA CGM – aimed to share about 250 vessels and would have had more than 40 per cent of Asia-Europe and trans-Atlantic trade and 24 per cent of the trans-Pacific market, according to industry estimates. It was rejected by Chinese regulators who did not believe consumers’ interests would be sufficiently protected against the domination of the three shippers.

The combined capacity share under this deal would be below 30 per cent in routes between Asia and Europe, Maersk Line chief executive Soren Skou said.According to Credit Suisse analyst Neil Glynn: "I would be surprised if Maersk Line didn't have a very strong idea of what regulators would and wouldn't approve based on their P3 experience."

Lars Jensen from maritime analysis company SeaIntel said by dropping CMA CGM, Maersk and MSC should placate any Chinese fears for its shipping container industry. – ( Reuters)