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Issue 7 2014 - Freight Business Journal


///NEWS


The Federal Maritime Commission (FMC) has given the green light


US gives green light to 2M Allport signs deal with PD Portcentric Logistics


to the


proposed ‘2M’ vessel sharing agreement between Maersk and MSC. While, the agreement of the Chinese competition authorities is still awaited, MSC says that the US was the only remaining jurisdiction that could have suspended or delayed implementation. The FMC concluded, in


a majority verdict that the agreement was not likely to reduce competition or increase rates. This contrasted with a European Shippers’ Council statement, published on 10 October, which described the proposed alliance as “bad for business”.


It argued


that the 185-vessel, 2.1m teu alliance would have a market share of up to 35% between Asia and Europe, enough to trigger action by competition authorities. In the UK, secretary-general


of the Global Shippers’ Forum, Chris Welsh, told FBJ that he believed that Chinese regulatory arrangements are complex, and involve three agencies under the umbrellas of MOFCOM, the country’s competition authority. He said: “It’s therefore difficult to assess how they will react, but I sense they will not stand in its way as the issues they raised with the P3 are not present – for example, the Singapore and London centres - and the market shares in the main trades are substantially lower


than the P3. The EU, consistent with its position regarding the P3,


A Chinese veto had does not intend to take


action against the 2M, relying on the Commission’s self- assessment procedures. This would enable the Commission to take action at a later stage if necessary.” He added that the GSF, for its


part, believes that the systems adopted by the FMC are sufficient to effectively monitor the M2, “not


least because


the FMC listened carefully to the concerns of GSF and adopted various monitoring requirements suggested by GSF. The GSF notes that the 2M has much reduced market shares compared to P3, and the development of the CUC alliance and the existing G6 and ‘Green Alliance’ is likely to foster a more pro-competitive environment.” The GSF had previously


expressed concerns over the P3 and other mega alliances, in particular the potential opportunity to restrict effective competition. With regard to mega alliances, Welsh added, “we believe there is merit in undertaking a more thorough competition policy analysis as this will give future legal clarity for carriers and shippers.” Meanwhile, MSC president


and CEO Diego Aponte said: “We are very excited that our customers will benefit from the outstanding service enhancements that 2M will deliver as early as the beginning of next year.”


scuppered the more ambitious P3 alliance between Maersk, MSC and CMA CGM earlier this year. The latter line has meanwhile announced a VSA with UASC and China Shipping. Earlier, MSC released details


of the services it plans to operate in conjunction with its partner Maersk Line in the 2M agreement, subject to regulatory approval. They include the Silk Service,


from South Korea, China and Malaysia to Felixstowe (first European call); the Lion service from China and Malaysia to the north-west Continent and Felixstowe; the Shogun service from Japan, China, Hong Kong and Malaysia to Felixstowe (first Europe call); and the Condor service from China and Malaysia to Southampton and Felixstowe. Eastbound to Asia there are


the Albatross service from Felixstowe to Asia, China and Korea; the Lion service from Felixstowe to Salalah, Jebel Ali, Malaysia, Hong Kong and China; and the Condor service from Southampton and Felixstowe (last European call) to China. On the Transatlantic route,


there are the Neuatl2 service from Felixstowe to the US east


coast and the Neuatl3


from Felixstowe to the US Gulf. Eastbound Transatlantic services include Neuatl2 from the US east coast to Felixstowe and Neuatl3 from the US Gulf to Felixstowe.


Hapag-CSAV deal is on


The European Union approved South American shipping line CSAV’s merger with Germany’s Hapag Lloyd on 11 September. The two lines signed a binding business combination


agreement in April. The Department of Justice of the US had cleared the planned transaction but approvals in a few other jurisdictions are still pending. The merger will create


the fourth largest container shipping company in the world, with 200 vessels, an annual transport volume of 7.5 million TEU and a combined turnover of about €9 billion.


Allport Cargo Services has signed a three-year partnership to operate its consolidation service out of PD Portcentric Logistics’ Felixstowe facility. The forwarder said that relocating from Tilbury to PD Ports’ 500,000sq ſt site will help it streamline handling for containers and improve the speed to which they are brought to market. Meanwhile, the 55,000sq


ſt Tilbury facility will be transformed into a bespoke retail and e-commerce fulfilment centre, receiving and picking stock and delivering to UK stores. It will also support the company’s growing e-commerce B2C offering for the same-day delivery market


freight operations director, Russell Lawrence, commented: “Working closely with a large and proven supplier like PD Portcentric Logistics is a great


across the


South East. Allport Cargo Services’ Sea


opportunity for us to improve the efficiency of and expand an important area of our business. The consolidation service will benefit greatly by operating out of this strategically selected location. Meanwhile, the move provides us with the chance to enhance our Tilbury site and provide greater strength to our retail and e-commerce offering.” PD Ports’ group managing


director for unitised and portcentric logistics, Frans Calje, added: “It is great to see yet


another business take advantage of our portcentric logistics solutions. We pride ourselves on providing a great service which will see benefits for customers’ supply chains. Having Allport choose to use PD Portcentric Logistics in Felixstowe further highlights our experience and competence in the sector.” Although PD Ports


is best


known for its ownership of Tees & Hartlepool, it also runs a substantial handling operation in Felixstowe.


UASC and Hamburg Süd get together


United Arab Shipping Company (UASC) and Hamburg Süd


have signed a global


partnership. Initially, the two partners will cooperate on several of their respective core trades, with Hamburg Süd entering the Asia-North Europe and Asia-US trades in December and January 2015, respectively, while UASC will enter the Europe- South America East Coast and Asia-South America East Coast trades from mid-2015. Initially, the cooperation will be a slot exchange but vessel


deployment opportunities will be explored in due course. Cooperation on other routes is under discussion. The new venture is separate


from the recently announced Ocean Three alliance between UASC, CMA CGM and China Shipping, said a UASC spokesman. He added: “The cooperation with Hamburg Süd enables access to the South America trades, providing service and cargo portfolio diversification that will cement UASC as an emerging global carrier.”


Detailed service announce-


ments will be provided by the lines shortly. The two partners said


that as well as respective customers’ business needs, key growth areas, and operational requirements, the need to address logistical imbalances was also a key driver behind the agreement. UASC president and CEO Jørn


Hinge, said the cooperation would give access to the South America trades “and illustrates our ambitious approach to enhance geographic coverage.”


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