News video: P3 Alliance announces first plans

[chrisg46]

The first announcement of service details for the P3 Alliance, combining Maersk, MSC and CMA-CGM ships, from member company MSC . .

There's a short news video on the video page, and on Shipping TV, and you'll find a large .pdf from MSC here:

http://www.mscgva.ch/news/library/p3_service_presentation.pdf

[Alan Green]

Probably the same information in a different format, courtesy of linervision:

the proposed Far East to (Northern) Europe network of the P3 will consist of eight weekly loops. This compares to the present set up of nine loops for Maersk, MSC and CMA CGM. The one-loop reduction will not have any meaningful capacity effect since larger ships, mainly in the form of 18,270 teu Maersk-EEE classes, are being phased-in successively.
The P3 service restructuring will see consolidation of Southeast Asia transhipment hub calls toward Tanjung Pelepas, at the expense of Singapore and Port Kelang.
Two services, the 'Baltic / FAL7 / AE8' and the 'Skaw / FAL8 / AE9' will feature direct calls in the Baltic Sea. One of the loops will reach as far as Poland, while the other will only call at Gothenburg, Sweden. Maersk Line had pioneered direct calls in the Baltic Sea with large Asia-Europe mainline tonnage, but the participation in such slings is new for MSC and CMA CGM.
The low number of calls at Rotterdam, Europe's largest container port, comes as a major surprise. Depending upon the future patterns of feeder services and on-carriage, both Antwerp and Bremerhaven appear to benefit from the changes. Most other ports will roughly see the same number of calls as now (or one less call because of the overall reduction in loops).
The eight Far East to Europe loops look as follows (MSC name / CMA CGM name / Maersk Name):
Albatros / FAL1 / AE1: 9x 19,000 teu
Rotterdam, Bremerhaven, Wilhelmshaven, Tanger Med, Suez Canal (way point), Tanjung Pelepas, Yantian (Shenzhen), Ningbo, Shanghai, Xiamen, Tanjung Pelepas, Suez Canal (way point), Algeciras, Tanger Med, Rotterdam.
Pendulum, Lion / FAL2 / AE2: 16x11,500 teu
Zeebrugge, Dunkirk, Southampton, Le Havre, Marsaxlokk, Suez Canal (way point), King Abdullah City, Jeddah, Singapore, Vung Tau (aka Cai Mep), Nansha, Hong Kong, Yantian (Shenzhen) / USWC / Shanghai, Ningbo, Yantian (Shenzhen), Chiwan (Shenzhen), Tanjung Pelepas, Sines, Antwerp, Zeebrugge.
Shogun / FAL3 / AE5: 11x13,000 teu
Le Havre, Felixstowe, Bremerhaven, Wilhelmshaven, Rotterdam, Suez Canal (way point), Colombo, Tanjung Pelepas, Hong Kong, Kobe, Nagoya, Yokohama, Ningbo, Shanghai, Hong Kong, Yantian (Shenzhen), Tanjung Pelepas, Suez Canal (way point), Le Havre.
Condor / FAL5 / AE6: 10x8,500 teu
Southampton, Hamburg, Bremerhaven, Felixstowe, Zeebrugge, Le Havre, Algeciras, Beirut, Suez Canal (way point), Port Kelang, Chiwan (Shenzhen), Ningbo, Shanghai, Xiamen, Hong Kong, Chiwan (Shenzhen), Tanjung Pelepas, Port Kelang, Suez Canal (way point), Southampton.
Swan / FAL6 / AE7: 11x13,000 teu
Rotterdam, Hamburg, Bremerhaven, Antwerp, Suez Canal (way point), Tanjung Pelepas, Shanghai, Busan, Dalian, Tianjin (aka Xingang), Qingdao, Ningbo, Shanghai, Chiwan (Shenzhen), Yantian (Shenzhen), Tanjung Pelepas, Suez Canal (way point), Rotterdam.
Baltic / FAL7 / AE8: 12x14,000 teu
Bremerhaven, Gdansk, Aarhus, Bremerhaven, Felixstowe, Suez Canal (way point), Singapore, Chiwan (Shenzhen), Busan, Kwangyang, Shanghai, Yantian (Shenzhen), Tanjung Pelepas, Suez Canal (way point), Bremerhaven.
Skaw / FAL8 / AE9: 12x13,000 teu
Felixstowe, Bremerhaven, Gothenburg, Rotterdam, Antwerp, Le Havre, Suez Canal (way point), Salalah, Khor Al Fakkan, Jebel Ali, Singapore, Chiwan (Shenzhen), Qingdao, Ningbo, Shanghai, Nansha, Yantian (Shenzhen), Tanjung Pelepas, Colombo, Suez Canal (way point), Felixstowe.
Silk / FAL9 / AE10: 12x13000 teu
Le Havre, Antwerp, Hamburg, Felixstowe, Gioia Tauro, Suez Canal (way point), Khor Al Fakkan, Jebel Ali, Singapore, Yantian (Shenzhen), Tianjin (aka Xingang), Kwangyang, Busan, Qingdao, Shanghai, Ningbo, Chiwan (Shenzhen), Singapore, Suez Canal (way point), Le Havre.

[spotti]

Chris and Alan, thanks for these interesting pieces of news.
At least one question arises from this: even if the ALBATROS/FAL1/AE1 with 9 x 19,000 teu
ships is run only by 3E-ships, where would/could Maersk Line then deploy the remaining
11 3E-ships?
Any indications or guesses?
BR Niels   

[chrisg46]

Were it just a Maersk question, Niels, I should think that the Triple-E's would then move into the AE2 loop - but I reckon there may be more changes when the P3 Alliance becomes reality. You could see them serving the GMA-CGM FAL1 rotation, calling Southampton, for instance . .

[ozzy76]

This whole idea smacks of anti competitive.
I'm surprised the US haven't used their Anti trust laws to break this up..Or perhaps the EU.

Can't see this lasting..at all.

[Alan Green]

I just noticed that the AE6/Condor/FAL5 service mentions both Southampton and Felixstowe as UK ports of call:

Condor / FAL5 / AE6: 10x8,500 teu
Southampton, Hamburg, Bremerhaven, Felixstowe, Zeebrugge, Le Havre, Algeciras, Beirut, Suez Canal (way point), Port Kelang, Chiwan (Shenzhen), Ningbo, Shanghai, Xiamen, Hong Kong, Chiwan (Shenzhen), Tanjung Pelepas, Port Kelang, Suez Canal (way point), Southampton.

I wonder if this is correct or a typing error with the press release ?

[Andrew McAlpine]

Hi Alan,

Details of the Condor service are correct it will call Southampton on the import leg and Felixstowe on the return export leg.

With reference to the EEE vessel deployment, P3 will deploy similar sized vessels from all three lines on each all of their combined loops.
Maersk will eventually have 20 of the EEE vessels, while MSC is chartering a trio of 18,000teu vessels. Added to the E-class and CMA CGM & MSC's current 16,000teu vessels the P3 alliance could easily operate 2-3 loops with vessel sizes from 15,500-18,000teu.

What is more interesting is that in MSC's presentation they state 19,000teu vessels perhaps the trio they are chartering will be increased to this size?

The smaller capacity vessels are initially to be deployed on the two loops calling at Southampton but I see that larger vessels will eventually cascade on to these services as the EEE's are delivered.

Interesting times ahead.

Regards
Andrew

[spotti]

Lloyd's List today:
During the coming 10 years the P3 Alliance hints at deploying vessels up to 19,200 teu on the strings to USA. The statement made in a FMC filing. Only headline reading, I have no access to LL.
BR Niels

[Alan Green]

Very interesting times ahead especially with the effects of cascading:

What size vessels will drop out at the bottom of the cascade ?
What will the effect be on shipowners having vessels returned to them as no longer required by the operators ?
Will younger and larger vessels be sent for scrap ?

[ozzy76]

 If you believe aNy of this will happen.
There is a bridge in Brooklyn I'd like to sell you 

It's pie in the sky stuff.
Still you can fool a lot of the people a lot of the time.

[Alan Green]

Hi Ozzy,

Latest information, courtesy of Linervision:

Subject to regulatory approval, the proposed P3 alliance - Maersk Line, MSC and CMA CGM - plans to restructure the three carriers' east-west mainline services. The new joint network will lead to a consolidation of strings and to an up-sizing of the vessel fleet.
The P3 alliance's Transatlantic pattern will consist of five dedicated weekly services: Three North Europe loops and two Med slings.
Additionally, one Suez-routed Asia to USEC service which performs way calls at Algeciras (WB) and Tanger Med (EB) is expected to serve partially as a Med to USEC loop.
One further Suez-routed Asia to USEC features underway calls at Haifa (WB and EB), but can be omitted from the count of actual Transatlantic services as Haifa is not a major hub and volumes are expected to be limited.
It has to be noted that the P3 agreement does not cover all Transatlantic activities of Maersk Line, MSC and CMA CGM.
Offerings such as dedicated India and Middle East to USEC loops, Panama-routed Europe to ANZ services with USEC coverage, as well as Canada-related services, remain outside the scope of the P3.
In many cases, such services are offered in partnership with third parties outside the 'big three'.
On the mainlines however, the P3 alliance's Transatlantic network of five loops will succeed a pattern of seven loops.
Nevertheless, the alliance is expected to increase its Transatlantic capacity by some 15%, as the partner carriers will phase many large ships into the consolidated service structure.
In 2014, many of today's 4,000 to 6.750 teu vessels trading between Europe and North America for P3 member lines, will be replaced or supplemented by 8,500 teu units.
Many such ships have become available since the Asia-Europe trunk routes are being boosted to capacities of 13,000 to 16,000 teu per week, with numerous newbuilt ultra-large vessels.
The P3 Europe / Med - North America setup looks as follows:
Northern Europe to USEC and US Gulf
North Atlantic / Liberty Bridge / TA1
Bremerhaven, Felixstowe, Rotterdam, Antwerp, Le Havre, New York, Baltimore, Norfolk, New York, Bremerhaven
South Atlantic / Victory Bridge / TA2
Antwerp, Rotterdam, Bremerhaven, Le Havre, Charleston, Freeport, Miami, Veracruz, Altamira, Miami, Savannah, Charleston, Antwerp
(MSC name) / Equality Bridge / TA3
Antwerp, Rotterdam, Felixstowe, Bremerhaven, Le Havre, New York, Charleston, Savannah, Houston, New Orleans, Mobile, Freeport, Norfolk, Antwerp
Mediterranean to USEC and US Gulf
(MSC name) / Amerigo / TA5
Gioia Tauro, Naples, La Spezia, Genoa, Fos-sur-Mer, Valencia, Sines, New York, Boston, Baltimore, Norfolk, Savannah, Charleston, Valencia, Gioia Tauro
(MSC name) / Med-Gulf / TA6
Gioia Tauro, La Spezia, Genoa, Barcelona, Valencia, Sines, Freeport, Port Everglades, Veracruz, Altamira, Houston, New Orleans, Miami, Freeport (Bah.), Sines, Algeciras, Barcelona, Gioia Tauro
Atlantic / Vespucci / (tbd) (as part of an Asia - USEC service with waycalls at the Gibraltar Strait hubs of Algeciras and Tanger)
(From Asia via Suez...), Valencia, Algeciras, New York, Savannah, Charleston, Tanger Med, Marsaxlokk, (...to Asia via Suez).

[ozzy76]

With New ships such as the Triple E entering into service.
I fully believe you that ships routes, port of calls etc..will change.
This stands to reason.
However the idea that the USA, with it's anti trust laws, The EU or China will let the
Top Three Container lines operate a Cartel...Why, If that happens..I'll eat my hat.

Also, one wonders, of the fact that these companies are announcing plans BEFORE they have been given LEGAL approval to do so.
It smacks of Arrogance and I'm sure the Civil servants will take a dim view of their behaviour.. Thirdly, Remember the Case of Vale and the Valemax ships.

The Chinese were very Fearful that Vale would have TOO big an influence over transport of their raw materials..They were wary of a player been able to SET prices..
How do you think they'll react to a container cartel?.been in a potential position of setting the prices of Chinese Container exports!!!
It DOESN'T ADD UP.

Finally, remember ALL plans are good plans until they make first contact with the enemy.
I believe  Clausewitz said words to that effect.
P.s. I'm willing to wager anyone this P3 will be shot down.

How do you think..Hapag Lloyd, Evergreen The Chinese COSCO and China Shipping are going to do about it?

Do you think , they will be lobbying their own politicians about these manoeuvres.
I an NOT buying into it.

[Alan Green]

More information appears here concerning the P3 collaborative agreement, courtesy of Shippingwatch:

http://shippingwatch.com/carriers/article6207530.ece?utm_source=Feed&utm_medium=topLatest_swuk&utm_campaign=English&utm_content=2013-11-05+16%3A04%3A00