The market share of the proposed P3 Alliance on the Asia-Europe, transpacific all-water and transatlantic trades could dwarf that of rival alliances, according to the latest quarterly World Liner Supply Report from BlueWater Reporting.
At the end of the second quarter of 2013, prospective P3 members Maersk Line, Mediterranean Shipping Co., and CMA CGM had a combined 43.4 percent share of allocated capacity on the trade between Asia and Northern Europe. The G6 Alliance, composed of lines in the New World and Grand alliances, had a 22.7 percent share of capacity, while the CKYH Alliance had an 18.4 percent share.
On the trade from Asia to the Mediterranean, the P3’s potential dominance is even more stark, with the three lines controlling 50.1 percent of capacity on that lane. The next biggest provider is the CKYH Alliance (COSCO Container Lines, “K” Line, Yang Ming, and Hanjin Shipping), with an 18.5 percent share.
Maersk, MSC, and CMA CGM announced in mid-June plans to form an alliance on the major global east-west trades
, with operation of the consortium scheduled to begin in the second quarter of 2014. The carriers have yet to file an agreement with the Federal Maritime Commission, a necessary step to partner on trades to and from North America.
In any case, the combined might of the P3 carriers wouldn’t be felt quite as acutely on the transpacific trade. There, they had a 20.4 percent of allocated capacity from Asia to the U.S. West Coast at the end of the second quarter, according to BlueWater Reporting. The CKYH carriers, in comparison, had a 27 percent share.
It should also be noted that Maersk, MSC, and CMA CGM are already involved in a vessel sharing agreement on the Asia-U.S. West Coast trade, so their potential alliance might have less impact on that trade than on the Asia-Europe trade.
On the all-water route from Asia to the U.S. East Coast, however, the P3 carriers would have been the top provider of capacity at the end of the second quarter, with 28 percent of allocated capacity, compared to 27.3 percent from the G6 Alliance, and 18.3 percent from the CKYH carriers.
The P3 lines also appear to have a commanding presence on the transatlantic trade in both directions – they collectively controlled 46.5 percent of allocated capacity eastbound to Northern Europe and 45 percent westbound from Northern Europe. To the Mediterranean, they operated 51.3 percent of eastbound transatlantic capacity, and 51.5 percent westbound.
The quarterly World Liner Supply Reports are designed to help ocean carriers, non-vessel-operating common carriers, freight forwarders, shippers, ports and analysts monitor competition and capacity trends in liner shipping. The report tracks on a quarterly basis how capacity moves on 30 individual lanes operating between Asia, Europe, and North and South America.
The 2013 Second Quarter WLS report is downloadable in Excel spreadsheet form here
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