Subscribe to our free, weekly email newsletter!


New ocean cargo agreement gets closer to reality

By Patrick Burnson, Executive Editor
October 30, 2013

The much anticipated P3 Network vessel-sharing agreement has been submitted to the Federal Maritime Commission. If approved, it will give Maersk, MSC and CMA CGM the ability to discuss and agree on the size, number and operational characteristics of vessels to be operated on transatlantic and transpacific trade lanes.

The P3 network agreement also includes the Asia-Europe trade – which is not subject to the Shipping Act or FMC jurisdiction.

According to Drewry Maritime Research, competitors of the P3 alliance will introduce only moderate capacity growth in its forthcoming schedules between Asia/Europe and Asia/North America, but its new services are a stark reminder of the “awesome” size of Maersk/MSC/CMA CGM’s combined resources.

Maersk, MSC and CMA CGM have opted for only moderate vessel capacity growth in their new schedules that take effect during 2Q 14, inferring that service quality rather than quantity will be the P3 alliance’s main fighting tool. In the case of Asia/Northern Europe, just a 2.25% increase is planned compared to the capacity offered at the beginning of September.

There will also be one less weekly service, although this will be more than compensated by a 14% increase in average vessel capacity, up to 13,032 twenty-foot equivalent units (TEUs), including the deployment of more 18,000 TEU vessels from Maersk.

Neil Dekker, Drewry’s head of container research, notes that there will also be one less weekly service between Asia and the Mediterranean, adding that it is not yet possible to assess the impact of this on capacity as vessel deployment within the new services remains to be clarified.

“However, here again, the reduction will probably be more than compensated by the cascading of 10 larger ‘ultra large container vessels’ no longer required between Asia and Northern Europe,” says Dekker. “It has only been confirmed so far that the P3’s new services will deploy vessels between 8,500 TEU and 16,000 TEU, but as the 64 vessels currently deployed there already average 10,467 TEU, that does not mean much.”

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The PMI, the ISM’s index to measure growth fell 0.8 percent to 52.7 (a PMI of 50 or greater represents growth). PMI growth has been at 50 or higher for 31 straight months (with the overall economy growing for 74 months), and the current PMI is 1.7 percent below the 12-month average of 54.4.

The current status of FedEx’ planned acquisition of Netherlands-based TNT-NV and a provider of mail and courier services and the fourth largest global parcel operator for $4.8 billion, which was initially announced in April, remains in flux, with continued actions being taken by the European Commission.

Panjiva said that the 1 percent sequential growth was in line with typically flat growth from May to June, as higher monthly growth typically takes hold in July and August in advance of the holiday season.

Hackett officials described this new offering as a short-term index that offers up “the sentiment for trade at a glance,” akin to other key economic metrics like the PMI and Consumer and Carrier confidence indices, while providing access to specifically see where a group of economic indicators are in relation to trade for the current month, too.

While many industry analysts contend that distribution centers near U.S. East Coast ports will see a surge of new business after the Panama Canal expansion, real estate experts say this phenomena is already underway.

Article Topics

News · Container · Trade · Shipping · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA