Maersk, MSC and CMA CGM to establish operational alliance

Maersk Line, Mediterranean Shipping Company (MSC) and CMA CGM announced June 18 that they have in principle agreed to establish a long-term operational alliance on East-West trades, called the P3 Network.
The P3 Network will operate a capacity of 2.6 million TEUs (initially 255 vessels on 29 loops) on three trade lanes: Asia – Europe, Trans-Pacific and Trans-Atlantic.
The three shipping lines explain that they will establish an independent joint vessel operating center in order to optimize operations through better utilization of vessel capacity.
They say that they intend to start operations in the second quarter of 2014, but the starting date will be subject to obtaining the approval of competition authorities.
Maersk, MSC and CMA CGM also still need to agree on definitive contracts, whose signing is planned for the fourth quarter of this year.
The P3 Network is expected to reduce the disruptions for customers caused by cancelled sailings, say the shipping lines, adding that their alliance will also offer more direct ports of call.
Maersk, MSC and CMA CGM say that they will offer more weekly sailings in their combined network than they do individually. As an example, the P3 Network plans to offer eight weekly sailings between Asia and Northern Europe.
While the network vessels will be operated independently by a joint vessel operating center, the three lines will continue to have fully independent sales, marketing and customer service functions. Ships will continue to be owned and/or chartered by the lines.
Headquartered in Copenhagen (Denmark), Maersk Line will contribute approximately 42 percent of the capacity, or about 1.1 million TEUs. That will include its new Triple-E ships, which will soon be the largest container ships in operation, with an individual capacity of 18,000 TEUs. Based in Geneva (Switzerland), MSC will contribute approximately 34 percent of the capacity, or 0.9 million TEUs.
CMA CGM, which has its headquarters in Marseilles (France), will contribute approximately 24 percent of the capacity, or 0.6 million TEUs. Its 16,000 TEU vessels, which include the Marco Polo, are currently the largest container ships in operation.