Shippers raise concerns over P3 alliance

CONTAINER shipping is back in the spotlight. Last week the Global Shippers' Forum (GSF) officially raised its concerns over the proposed P3 Global Alliance among Maersk Line, CMA-CGM and Mediterranean Shipping Company (MSC) by submitting detailed questions to the European Commission Competition Directorate in Brussels.

At the same time Drewry Maritime's latest Container Market Annual Review and Forecast 2013/14 highlights the fact that while there is a good deal of excessive market behaviour resulting in weak freight rates, ocean carriers are "getting half of it right". The half Drewry believes the lines are getting right is cutting costs.

The shippers believe, rightly, that consolidation of services will tend to restrict capacity and that will consequently put upward pressure on freight rates. Drewry's review is the latest in a long succession of industry reports that essentially point out that it is almost impossible to make long-term profits that reflect the level of investment required.