Cargo Business Newswire

Monday, September 8, 2014

U.S. and China to meet on proposed Maersk-MSC alliance

The U.S. probably won’t approve the proposed 2M alliance between shipping giants Maersk Line and Mediterranean Shipping Co. until the Federal Maritime Commission consults with their Chinese counterparts, according to one of the agency's commissioners.

FMC Commissioner William Doyle told The Wall Street Journal that he wants to consult with Chinese regulators before reaching a decision on the so-called 2M vessel and route sharing alliance submitted by Maersk and MSC.

Earlier this year, Beijing shocked the shipping industry when it nixed the similar but larger P3 alliance, a prospective tie-up between Maersk, MSC and CMA CGM.

Maersk and MSC, the globe’s two top container-shipping companies by capacity, filed a request for approval of the 2M alliance with the FMC last week.

If approved, 2M will move about 30 percent of all cargo between Asia and Europe and across the Atlantic and Pacific oceans. The agreement is expected to save the two companies hundreds of millions of dollars annually.

The wider alliance that included CMA CGM required formal approval from the FMC and Chinese and European regulators. For this one, Maersk and MSC officials say they only need to file their operational plans with the European and Chinese watchdogs, but formal clearance is only needed by the FMC.

"I want to see if China's regulatory authorities have any concerns," Doyle said. "The 2M partners can say whatever they want, but what's important is what China comes up with. Let's not forget the trade to Europe from Asia comes from Asia."

For more of the Wall Street Journal story: online.wsj.com

More Newswire stories

City approves $848M Port of Long Beach budget for new fiscal year

BNSF-Tacoma Rail contract could give Port of Tacoma a boost

1 dead, 1 missing after cargo ship capsizes in Sea of Japan

Today's Cargo News Archives