Due to monopoly concerns China has rejected a shipping alliance. This decision was undertaken to save the industry money, even though there was approval from E.U. and U.S.
P3 Network was supposed to work in a similar way for code-sharing deals held between airlines. The concept was to permit the world’s top three container shipping operators according to the volume. This was intended to cut costs on sharing ships and the port facilities. If the deal had taken place then there would have been 250 ships participating in the network.
Various publications stated that the P3 Network would have placed the three partners in this deal to have control of over 40% of the cargo along with three trade routes which include the Asia to Europe, trans-Atlantic, and trans-Pacific.
This idea was announced previous year. It was conceived by a proposed collaboration with three shipping groups which were Mediterranean Shipping Company (MSC) from Switzerland, Maersk from Denmark, and CMA CGM which is from France. The network was intended to start operations in the second quarter of the current year. However, approvals from various authorities were required which include U.S., E.U., and China.
This alliance was approved by the U.S. Federal Maritime Commission in the month of March. Also, the E.U. competition authorities stated earlier this month that they would not increase any anti-trust issues in relation with this deal.
But, China’s Ministry of Commerce declined this collaboration. It was stated by Chinese news agency that this action was taken due to monopoly concerns.