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Maersk-MSC's 2M suffers poor reviews from CCTV documentary report

STATE broadcaster China Central Television (CCTV) said the proposed Maersk-MSC mega 2M alliance may result in price increases for consumers and trouble for Chinese shipping lines.

CCTV aired a critical five-minute documentary report on how the vessel sharing agreement between Maersk Line and Mediterranean Shipping Co could affect China, said London's Lloyd's List.

"Maersk and MSC will control the largest shares in Asia-Europe and transatlantic trades. They will have a bigger say in the market, and China's exporters and importers will have weaker bargaining power," the CCTV report said.

Shang Ming, the Ministry of Commerce's anti-monopoly chief, told CCTV the alliance could have an impact on Chinese consumers as prices of goods are partly determined by shipping costs.

"If there is any monopoly behaviour, the monopolist may eventually set the prices at its will. And if the prices increase, consumers would be hit," Mr Shang said.

Said China Shipowners' Association spokesman Zhang Shouguo: "Chinese-controlled fleet carries less than one-third of total exports from China."

CCTV rarely reports on container shipping, but its past negative coverage of Volkswagen and Apple has forced the multinationals to recall their products or offer public apologies.

Maersk and MSC proposed the three-way P3 Network with CMA CGM, but that ran aground over the Ministry of Commerce objections. It was thought that the two-way 2M deal will avoid the Ministry of Commerce and apply through the Ministry Transport.