The Chinese Ministry of Commerce (MOFCOM) did not approve a long-term operational vessel sharing agreement that was proposed by three ship lines: Maersk, Mediterranean Shipping Co. (MSC) and CMA CGM. The MOFCOM’s decision was made “following a review under China’s merger control rules,” according to a statement posted on all three carriers’ websites.
In a statement, the P3 partners said that they had taken note of and respected MOFCOM’s decision, and have subsequently agreed to stop all preparatory work on the P3 Network.
P3 was introduced by the three ship lines on June 18, 2013, as a long-term operational vessel sharing agreement on the East-West trades. Under the initial proposal, the P3 Network was designed to improve the service quality for shippers and well as provide what the three shipping lines say would be more frequent and reliable services.
The rejection was surprising since the p3 agreement had already been approved by the US Federal Maritime Commission and the EU Commission.
Analysts had predicted that the alliance would have massive implications for the global container shipping market and generate a player that would be a force in the shipping line industry.