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Ocean 3 - CMA CGM, UASC, China Shipping - Forge latest mega alliance

NO regulatory objections are expected to thwart new Ocean Three alliance by its members, CMA CGM, China Shipping (CSCL) and United Arab Shipping Co (UASC).

They planning to start vessel sharing and slot swapping in early December with 129 ships, but the scheme must first pass muster before the US Federal Maritime Commission as it intends to make US port calls.

But with an estimated 13 per cent market share on the transpacific, the members do not expect their union will raise regulatory hackles, noted Lloyd's List.
Nor do they feel it is likely it will rouse objections on the Asia-Europe trade lane where it only has a market share of 20 per cent - below the 30 per cent mark that sets off EU and Chinese regulatory alarms.

CMA CGM and UASC have said the Ocean Three deal does not need clearance from China where the Ministry of Commerce banned P3 Network, which proposed to unite Maersk, MSC and CMA CGM, because of its large Asia-Europe market share, reckoned by Chinese regulators at 47 per cent.

The new 2M network uniting Maersk and MSC, like the banned P3, is exclusive club, with members forbidden to unilaterally form alliances with shipping lines outside the group. But this is not the case with Ocean Three members, which are free to do so.

Nonetheless, Maersk and MSC have ended vessel-sharing agreements, mostly with CMA CGM, in order to concentrate solely to 2M.
But in the Asia-Europe trades, CMA CGM will operate two services outside Ocean Three. These are in partnership with Evergreen.

These will be in addition to four Ocean Three services on this route, two operated by CMA CGM, and two by UASC and China Shipping together, with slot exchanges between each.