French container firm forms Ocean Three alliance

[PARIS] French container shipping group CMA CGM has sealed an alliance with two rivals after a failed attempt to partner bigger peers Maersk and Switzerland's MSC, vetoed by China earlier this year due to competition concerns.

CMA CGM said on Tuesday it had agreed a service sharing alliance with China Shipping Container Lines and United Arab Shipping Co to be known as Ocean Three. The agreement still needs approval from the US Federal Maritime Commission.

The deal comes after the collapse in June of CMA CGM's planned service-sharing alliance with Maersk and Mediterranean Shipping Co or MSC. Since then Maersk and MSC have formed a two-way linkup that they expect to launch early next year.