Maersk Line and P3 partners receive European Commission affirmation
The P3 Network – the long-term operational vessel sharing agreement proposed by MSC, CMA CGM, and Maersk Line is subject to regulatory review in jurisdictions in North America, Europe and Asia. In the European Union (EU), the P3 Network was required to conduct a self-assessment. Since its conclusion, the P3 partners have been in voluntary discussions with the European Commission to confirm the P3 partners’ view of P3 being in compliance with EU competition law, Maersk Line said Wednesday in a press release.
On 3 June 2014, the European Commission informed the P3 partners that the Commission will not open proceedings in connection with P3. The Commission will follow P3 to ensure it remains in compliance with EU competition law.
“In our self-assessment we concluded that the P3 Network is in compliance with the competition law in the European Union. We are pleased with the Commission’s communication and that they have decided to not open proceedings. We will now continue our close cooperation with competition and maritime authorities in amongst others China and South Korea to obtain their approvals.” says Vincent Clerc, Chief Trade and Marketing Officer, Maersk Line.
On 24 March 2014, the U.S. Federal Maritime Commission (FMC) decided to allow the P3 Network agreement to become effective in the US.
About P3
On 18 June 2013, Maersk Line, MSC Mediterranean Shipping Company S.A. and CMA CGM announced their intention to establish a long-term operational vessel sharing agreement on the East – West trades, called the P3 Network (P3). The overall aim with P3 is to make container liner shipping more efficient and improve service quality for the shippers - our customers - due to more frequent and reliable services.
P3 benefits include:
Operational efficiencies due to improved port productivity, network optimization and cargo consolidation
More direct services due to more port pair connections
Increased flexibility due to the combined capacity of P3 making it easier to increase or move capacity to meet short-term, sudden changes in demand
Cost savings and environmental benefits
P3 will operate a capacity of 2.6 million TEU on three trade lanes: Asia – Europe, Trans-Pacific and Trans-Atlantic.
P3 will be an operational, not a commercial, cooperation. The P3 Network vessels will be operated independently by an independent vessel operating centre. The three partners will remain competitors with fully independent sales, marketing and customer service functions and pricing policies. Subject to the receipt of all relevant regulatory clearances (and the fulfilment of other conditions for completion), P3 is scheduled to start operations in the autumn of 2014.