Chinese regulators will be approached by US Federal Maritime Commission (FMC) officers before any decision is taken to approve the proposed alliance between Maersk Line andMediterranean Shipping Co, referred to as ‘2M’.
In June 2014, Beijing blocked Maersk and Mediterranean Shipping Co’s (MSC) proposed vessel-sharing triumvirate with French shipper CMA CGM, referred to as ‘P3’.
The move was blocked on antitrust grounds, as China feared the world’s largest shipping companies could create an unfair monopoly; out of the ashes of that proposal, comes 2M.
Maersk and MSC, the world's two biggest container-shipping companies by capacity, filed for approval of the 2M alliance with the US FMC last week, and if approved, 2M will haul around 30% of all cargo between Asia and Europe and across the Atlantic and Pacific oceans.
The deal could potentially save Maersk and MSC hundreds of millions of dollars in annual operational costs.
Maersk and MSC executives believe 2M only needs to file operational plans with European and Chinese watchdogs, and needs formal clearance only from the FMC, unlike P3, which required formal clearance from Europe and China too.
FMC commissioner William Doyle said: "I want to see if China's regulatory authorities have any concerns. 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, and especially China."
The FMC has 45 days to reach a ruling on 2M, according to the Wall Street Journal, but Doyle said the FMC may require a second 45-day period to reach a final decision.
Skou: We comply with the Chinese requirements
CONTAINER:
Maersk Line CEO Søren Skou states that 2M's registration in China complies with the requirements of similar agreements, and that the collaboration is thus operationally ready.
2M complies with the Chinese requirements for the establishment of a Vessel Sharing Agreement (VSA), and Maersk Line and MSC's collaboration is therefore, in principle, ready for launch, says Maersk Line CEO Søren Skou in a comment to ShippingWatch.
The comment comes after it has been revealed that one of the members of the US Federal Maritime Commission, FMC, will likely consult the Chinese regulatory authorities before the FMC makes its final decision regarding 2M.
"We've submitted our application and have thus fulfilled the requirements, but the Chinese regulators can of course at any given moment launch a study of the agreement. But we do believe that our VSA is fully comparable to other collaborations of similar scope," says Søren Skou.
Doyle is skeptical
The 2M partners have submitted their application to the FMC, which thus has 45 days to evaluate the collaboration, and it is in this regard that one of the FMC's five commissioners, William Doyle, wants to discuss the new major alliance between the world's two largest container carriers with the Chinese regulators. William Doyle was also the most skeptical FMC commissioner earlier this year, where the Commission ultimately cleared the planned P3 alliance between Maersk Line, MSC and CMA CGM.
"I want to see if China's regulatory authorities have any concerns. 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 and especially China," William Doyle tells the Wall Street Journal.
Only the US authorities will have to formally approve the collaboration. Unlike the P3 alliance - which China ultimately rejected - the 2M agreement will only have to be registered with the EU and China.
2M is expected to be launched in 2015.
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