SeaIntel says P3 will have advantages over competition
If the P3 Network is approved by antitrust authorities, its members — Maersk, MSC and CMA — will have "two large competitive advantages over their closest competitors," said Copenhagen-based SeaIntel Maritime Analysis.
Alan Murphy, SeaIntel's chief operating officer, said, “Our analysis shows that the CKYH and G6 alliances currently on the Asia-North Europe trade operate an average vessel size of 11,050 TEU and 11,250 TEU, respectively. According to the presentation published by MSC, P3’s average vessel size will in Q2 2014 be 12,900 TEU. The P3 carriers will have a significant economy of scale advantage, allowing them to operate with a much lower unit cost."
In the Asia-U.S. West Coast trade, SeaIntel said its analysis shows that the P3 carriers will have a significant scale advantage, with their announced average vessel capacity in Q2 2014 being 9,500 TEU. New World Alliance’s current average vessel capacity is 6,900 TEU, Grand Alliance’s is 6,500 TEU, and CKYH’s is 5,800 TEU.
In addition, SeaIntel said the number of port-to-port combinations the P3 Alliance can serve directly "is significantly larger than what the other carriers can cover. That a carrier can transport containers directly from one port to another does not necessarily mean better service for the customer, it will, however, reduce the risk of delays, as the transport will only depend on one service, instead of two or three. It will also mean that the carriers only have to pay the ports for handling the container once, which should reduce the costs for the shipper as well.
"In the Asia-North Europe trade, the P3 network will yield 143 unique port-to-port combinations, meaning that the P3 carriers can directly serve 80 combinations more than the G6 carriers and 87 more than the CKYH carriers. In the Asia-Mediterranean trade, the P3 carriers can also offer a larger pool of directly served port-to-port combinations, with the P3 carriers offering 172 combinations, while G6 only offer 50 and CKYH offer 89," SeaIntel said.
"With the significant advantages the P3 network will offer Maersk Line, MSC and CMA CGM, if the alliance gets approved by the various antitrust authorities, we expect the other carriers/alliances in the near future will come up with some kind of counter-reaction, as they otherwise will see their competiveness greatly reduced," Murphy said. "The reaction could very well be the CKYH and G6 carriers start a renewed program of ordering of mega-vessels, despite the detrimental effect this would have on the long term market outlook."