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Further fears may delay regulatory approval to launch P3 in April
MORE expressions of anti-competition concerns could lead to further delays in the proposed P3 Alliance gaining regulatory approval, after the US Federal Maritime Commission's latest invitation for public comments from interested parties closed on December 26, 2013.
The FMC had requested on December 5 additional information about the proposed vessel-sharing alliance that would engage in the trades between Asia and Europe with the US from members, Maersk, MSC and CMA CGM.
The FMC approval process will now hinge on the P3 shipping lines' submission of the requested information and documents to be followed by a new 45-day regulatory review period.
The FMC could request for additional information after that, which could further delay the targeted date for the P3 agreement to become effective in April.
Congressman Eni Faleomavaega said in a letter to the FMC dated December 19 that the creation of the P3 Alliance marks "a significant change in the structure of the container shipping market will have profound consequences for shippers, terminal operators and port authorities.
"The long run consequence could be significantly increased concentration amongst shipping lines and terminal operators."
The German Shippers Council (DSVK) also stated in a letter dated December 17 that its members feared "a major deterioration which on certain routes could lead to monopolistic market conditions and rising prices for shippers."
Uncertainty over the start of the P3's service network in 2014 could have a potentially destabilising effect on the market this year as carriers continue to struggle with the supply-demand imbalance.
The FMC had requested on December 5 additional information about the proposed vessel-sharing alliance that would engage in the trades between Asia and Europe with the US from members, Maersk, MSC and CMA CGM.
The FMC approval process will now hinge on the P3 shipping lines' submission of the requested information and documents to be followed by a new 45-day regulatory review period.
The FMC could request for additional information after that, which could further delay the targeted date for the P3 agreement to become effective in April.
Congressman Eni Faleomavaega said in a letter to the FMC dated December 19 that the creation of the P3 Alliance marks "a significant change in the structure of the container shipping market will have profound consequences for shippers, terminal operators and port authorities.
"The long run consequence could be significantly increased concentration amongst shipping lines and terminal operators."
The German Shippers Council (DSVK) also stated in a letter dated December 17 that its members feared "a major deterioration which on certain routes could lead to monopolistic market conditions and rising prices for shippers."
Uncertainty over the start of the P3's service network in 2014 could have a potentially destabilising effect on the market this year as carriers continue to struggle with the supply-demand imbalance.
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