Among the many impacts of Maersk Line, Mediterranean Shipping Co., and CMA CGM proposing to jointly operate container services on the world’s three key east-west trades, perhaps the most important and least understood is how transit times might change.
The three carriers’ proposed P3 alliance is scheduled to go into effect in mere weeks, pending regulatory approval on three continents.
A new report from BlueWater Reporting details the potential transit time impacts of the combined P3 carriers’ merged services on the transpacific, Asia-Europe, and transatlantic trades.
The 26-page report, "P3 Alliance Transit Time Analysis: Winners and Losers for the Proposed Service Network," aims to answer a number of questions:
- Does the proposed P3 service network improve upon transit times on existing P3 member dominated services?
- Do the transit times of the proposed P3 surpass those of services dominated by competing lines?
- Which ports stand to gain a competitive advantage based on these changes?
“The P3 Transit Time Analysis does more than simply answer these questions, however, as it includes pivot tables sent within an Excel workbook, containing all of the source data transit times for the proposed P3 services, current existing P3 member carrier services and competitor services, giving readers an unrivaled level of access and insight into the data itself,” said Ben Meyer, research analyst for BlueWater Reporting and author of the report.
The report dives deep into each of the three trades to uncover what the merged services might look like.
“The introduction of the proposed P3 Alliance service network will have its greatest effect, at least in terms of transit times, in the highly competitive westbound Asia-Europe trade, where P3 member carriers Maersk Line, Meditteranean Shipping Co and CMA CGM already control more than 44 percent of the estimated market share by allocated capacity (according to the latest quarterly World Liner Supply Report from BlueWater Reporting),” Meyer said. “What will be interesting to see is whether the P3 member carriers begin dissolving their existing slot agreements on competing carrier services such as Green Alliance carriers COSCO, “K” Line, Yang Ming, and Hanjin Shipping and Evergreen.”
If you are an American Shipper Global Schedule Subscriber, a BlueWater Reporting Individual Subscriber or a BlueWater Reporting Corporate Subscriber click here download this report.
The report may also be purchased directly for $250.