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May 12, 2014

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GOVERNMENT WATCH INTERNATIONAL | WASHINGTON | CUSTOMS | SECURITY | REGULATION 16 THE JOURNAL OF COMMERCE www.joc.com MAY 12.2014 By Greg Knowler and Annie Zhu THE WORLD'S TOP three container lines appear to have little visibility into whether Chinese regulators will join their U.S. and European counterparts in allowing the carriers' P3 alliance to take effect. Sources within Maersk Line, Mediter- ranean Shipping Co. and CMA CGM, the three carriers making up the P3 Network, said recently they have no clear indication when a decision would come. The best guess at this point, one source said, is that a deci- sion would come in June, or the end of the second quarter, which was when the carri- ers originally said they wished to launch the alliance. But approval isn't certain, with one source putting the odds no higher than 50-50. The proposed alliance, which would initia lly involve 252 vessels tota ling 2.6 million 20-foot-equivalent container units on east-west routes, would be the world's largest carrier alliance. Because the ships operated by the P3 would be larger on average than ones operated by the other major alliances, the G6 and CKYHE, it would put the carriers at a cost advantage over most of the rest of the industry. China's Transportation and Commerce ministries are reviewing the proposed alli- ance. "China's Ministry of Transport has no problem with P3, and is waiting for the com- ments from the Ministry of Commerce, which does not have a timetable," said Qi Yinliang, founder of Shanghai-based ship.sh, China's largest shipping industry media outlet. Repre- sentatives of Chinese carriers previously said they believe the alliance would be approved in China. CHINESE CHECKERS China's slow regulatory review leaves P3 carriers in a holding pattern 242 252 66 90 Updated: April 2014 Sources: Carrier statements, SeaIntel 29 28 The G6 Alliance services are scheduled to begin in the second quarter of 2014, pending regulatory approval. NUMBER OF VESSELS NUMBER OF PORTS NUMBER OF LOOPS e G6 Alliance has unveiled plans to expand into the trans-Atlantic and Asia-U.S. West Coast trade lanes in response to the proposed P3 Network. Asia-North Europe Asia-North America West Coast Asia-Mediterranean Trans-Atlantic Asia-North America East Coast 5 6 5 4 8 Asia-North America West Coast planned Asia-Europe/Mediterranean Asia-North America East Coast Trans-Atlantic* planned 6 6 5 12 * including two pendulum services

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