Thursday, 27 June 2013

New P3 Shipping Alliance Could Be Good For Shipping Industry

The shipping industry continues to make big news these days, with the latest announcement that the world’s three biggest shipping lines could be setting up an operational alliance, on three of the world’s busiest trade routes. Maersk Line, the pride of Denmark and the biggest of the three, along with the Mediterranean Shipping Company, a Swiss company, and together with CMA CGM from France, are looking at creating a P3 Network on three busy global routes. The Asia-Europe, trans-Pacific and transatlantic routes are expected to increase in traffic substantially in the coming years as many of the emerging global markets are located in that region of the world.

"In recent years, Maersk Line has taken many initiatives to improve on the customer and products side, and this alliance will be yet another step in this drive. It will provide our customers on the main trades with attractive, stable services and our Triple-E vessels will be implemented in the network without adding to the overcapacity on Asia-Europe."- Maersk's Chief Trade and Marketing Officer.

Currently these big three giant shipping companies operate around 37 percent of the world’s container capacity and It is expected that Maersk will be making up about 42 percent of the total capacity of the new group. As well, the company's contribution will also include it’s new Triple-E fleet in the alliance, when they are finally built and released into the trade system. There are some in the industry that believe this could lead to less competition in the sector, while other analysts believe that it will not affect the balance as it stands now. Aside from the P3 network, there are about 20 other shipping companies that make up the rest of the percentage of the global shipping trade.

This is just another sign of the times. With so many more new trade agreements being signed all around the globe, further strengthening the global economic prospects, the shipping industry has had to try and stay one step ahead; as the demands from one region to the next are in a constant state of change. It looks like the big three are going to be in a good position to capitalize in the future and will be able to count on each other to deliver the growing amount of consumer goods that could in fact double by the year 2020. This move by the world's shipping industry leaders is expected to go a long to help stabilize the struggling industry, and continue to deliver profitability to the busiest trade routes in the world.

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