P3 abandoned as China says ‘No’

The Chinese Ministry of Commerce (MOFCOM) announced yesterday (17 June) that it had not approved the P3 Network proposed by the world’s three leading shipping lines – Maersk Line, Mediterranean Shipping Company (MSC) and CMA-CGM – on the grounds that the agreement would “restrict competition” on the busiest Asia-Europe routes.

The decision, following a review under China’s merger control rules, contradicts the approvals given by the US Federal Maritime Commission in March and the European Commission announcement that it had closed its anti-trust investigation earlier this month (June).

As a direct result, the three lines issued a statement saying that they had agreed to stop the preparatory work on P3 as initially planned and that it would not come into existence.  Maersk Group CEO Nils S. Andersen admitted that the news had “come as a surprise”.