Maersk asks China for 2M anti-trust okay after saying it was needless

    DESPITE saying the Maersk-MSC's 2M vessel-sharing plan posed no regulatory risk in China, Maersk Line CEO Soren Skou has called upon Chinese competition authorities about the deal that would unite the world's two biggest shipping companies.

　　Mr Skou met with MOFCOM anti-monopoly bureau chief Shang Ming, who warned the public in a July CCTV interview that new pact could affect China"s import-export firms" ability to bargain with big shipping lines.

　　Mr Skou also met China"s Vice Minister of Transport He Jianzhong last week to discuss the Chinese shipping market, a government notice said.

　　In July, a critical CCTV five-minute documentary said the 2M alliance may result in price increases for consumers and trouble for Chinese shipping lines.

　　"Maersk and MSC will control the largest share in Asia-Europe and transatlantic trade. They will have a bigger say in the market, and China's exporters and importers will have weaker bargaining power," the report said.

　　Maersk assured all the new scheme would pass on a nod at the Ministry of Transport as have other alliances, rather getting a full Ministry of Commerce (MOFCOM) probe that last time ended in the banning the P3 alliance of Maersk, MSC and CMA CGM.

　　The reason for the earlier assurance was that the new union would give the 2M partners less than 30 per cent Asia-Europe market share whereas the banned P3 alliance of the big three would give them as much as 45 per cent.

　　A Maersk spokeswoman said the company had initiated the meeting and that it was only natural to update MOFCOM as it blocked P3 in June, Reuters reported.

　　"We fully understand MOFCOM"s decision, which is why we have decided to engage in a traditional [vessel-sharing agreement] with MSC," she told Reuters.

　　MOFCOM is an executive agency of the ruling State Council of China. It is responsible for formulating policy on foreign trade, export and import regulations, foreign direct investments, consumer protection and market competition.

　　The 2M alliance is awaiting on US regulatory approval though Maersk Group CEO Nils Anderson called the approval a formality.

　　Meanwhile, Maersk and MSC have notified EU authorities that they have completed a self-assessment of the vessel-sharing agreement to ensure its compliance with European Union competition law.

　　“We will of course provide the European Union with any information it may request,?said a Maersk spokesman. Vessel sharing agreements to not require approval from European competition regulators, but shipping lines are expected to self-assess to ensure there is no abuse.

　　Container shipping lines are forming such alliances to reduce costs as they emerge from a slump. CMA CGM in September announced a tie-up with China Shipping and United Arab Shipping Company after being left out of 2M.