High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
Following today’s decision by the Chinese Ministry of Commerce (MOFCOM) to not approve the P3 Network, a proposed vessel sharing alliance between the world’s top three container shipping firms – MSC, CMA CGM, and Maersk Line, the three partners have decided to cancel all plans involving the proposed alliance.
“In Maersk Line we have worked hard to address the Chinese questions and concerns. So of course it is a disappointment. P3 would have provided Maersk Line with a more efficient network and our customers with a better product. We are committed to continuing to be cost competitive and offer reliable services,” commented Vincent Clerc, Chief Trade and Marketing Officer, Maersk Line.
“The decision does come as a surprise to us, of course, as the partners have worked hard to address all the regulators’ concerns. The P3 alliance would have enabled Maersk Line to make further reductions in cost and CO2 emissions and not least improve its services to its customers with a more efficient vessel network. Nevertheless, I’m quite confident Maersk Line will accomplish those improvements anyway. It has delivered on those improvements over the last five quarters in the absence of P3 and I’m confident it will continue to do so,” says Group CEO Nils S. Andersen.
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