The Global Shippers’ Forum (GSF) raised expectations for the P3 Network to provide improved services and more competitive rates as well as to strictly adhere to fair trade rules following its clearance from the European Commission (EC) to operate on European trade lanes.
“The P3 lines must now step up to the plate and deliver on their promises of improved services and lower costs,” said GSF Secretary General Chris Welsh. “Shippers will expect to see a wider range of services, enhanced service performance including improved service reliability and on time delivery.
Above all, said Welsh, shippers expect to share in the benefit of more competitive freight rates through reduced costs.
The GSF, a UK-based trade association for shippers engaged in international trade and moving goods by all modes of transport, also supported the Commission’s declaration that it would closely monitor the P3 for compliance with EU competition rules.
“The GSF has asked the Commission to closely scrutinise the P3 to ensure the Agreement is in line with the general provisions of the EU competition guidelines. We have 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 said the P3 should assist the Commission in monitoring compliance by providing reports on service performance on specific port pairs, vessel withdrawals including short-term withdrawals that might cause disruption to shippers’ supply chains, and 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.
Welsh added: “Effective monitoring of P3 compliance with EU competition rules is absolutely essential in view of the unprecedented market power of the world’s three largest lines that collectively represent over 40% market share in the world’s main liner trades, including over 46% market share in the Asia-Europe market.”
He further said that any reduction in service quality or elimination in effective competition between the P3 lines and in the liner market generally should merit “immediate action by the European Commission against the P3 lines, including the imposition of appropriate sanctions for competition abuses.”
The EC approved earlier this month the P3 Network, an operational vessel-sharing agreement on the East-West trades between CMA CGM, Maersk Line, and Mediterranean Shipping Co.
The affirmation came following discussions in which the P3 partners managed to convince the EC that the proposed network would be obeying the competition law in the European Union.
The P3 Network, unveiled by the world’s top three box shipping lines on June 18, 2013, will operate a capacity of 2.6 million TEUs (20-foot-equivalent units) on three trade lanes: Asia-Europe, trans-Pacific, and trans-Atlantic.
Photo: Roman Boed
