The Global Shippers' Forum has welcomed the European Commission’s promise to monitor the P3 Network but it has warned the carriers they must deliver on their promise of service improvements.
Following news that the Maersk Line, Mediterranean Shipping Co and CMA CGM tie-up would not come under European Commission scrutiny, GSF secretary-general Chris Welsh said the body had asked the commission to scrutinise the P3 Network.
The Global Shippers' Forum has welcomed the European Commission’s promise to monitor the P3 Network but it has warned the carriers they must deliver on their promise of service improvements.
Following news that the Maersk Line, Mediterranean Shipping Co and CMA CGM tie-up would not come under European Commission scrutiny, GSF secretary-general Chris Welsh said the body had asked the commission to scrutinise the P3 Network.
It had also requested regular monitoring of the agreement and the provision of “specific information by the P3 lines to assist the commission in monitoring compliance with the competition rules”.
The GSF called on the shipping lines to provide the European Commission with reports on service performance on specific port pairs and vessel withdrawals, including short-term withdrawals that might cause disruption to shippers’ supply chains.
It also asked for information about future investment plans, including future joint investment strategies that would impact on future capacity availability in the markets in which the P3 will operate.
Mr Welsh said: “Effective monitoring of P3 compliance with European Union competition rules is absolutely essential in view of the unprecedented market power of the world’s three largest lines that collectively represent over a 40% market share in the world’s main liner trades, including over 46% market share in the Asia-Europe market.
“If there are any signs of a reduction in service quality or elimination in effective competition between the P3 lines and in the liner market generally we would expect immediate action by the European Commission against the P3 lines including the imposition of appropriate sanctions for competition abuses.”
He also called on the shipping lines to deliver on the service improvements that they have said the P3 Network will make possible.
“The P3 lines must now to step up to the plate and deliver on their promises of improved services and lower costs,” he said.
“Shippers will expect to see a wider range of services and enhanced service performance including improved service reliability and on-time delivery.
“Above all, shippers expect to share in the benefit of more competitive freight rates through reduced costs.”
Announcing that it would not launch an antitrust investigation against the P3 lines, and also the G6 Alliance, which is expanding into the transatlantic trade lane, the European Commission said it would follow market developments and remain vigilant regarding any risks to competition that might arise from the implementation of P3 or G6.
“The commission will consider intervening if necessary,” it added.
In March, shipper bodies welcomed the US Federal Maritime Commission’s promise to set up a monitoring programme for the P3 Network.
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