P3 rejection 'good for competition'

The Ministry of Commerce's rejection of a container shipping alliance proposal floated by three European maritime giants will maintain a fair competitive environment on a number of the world's busiest shipping routes, said industry sources.

A year ago, Denmark-based A.P. Moller-Maersk Group, Mediterranean Shipping Co SA of Switzerland and French shipper CMA CGM SA decided to establish a long-term operational alliance, the P3 Network, on East-West routes to optimize resources and lower costs. The ministry's decision essentially terminates the proposal.

Zhang Shouguo, vice-president of the China Shipowners' Association, said even though China's trade volume is the largest in the world, its container fleet is just fourth in the global market.