DAILY NEWS Dec 23, 2013 1:27 PM - 0 comments

P3, expanded G6 to have positive impact on shippers, carriers: Drewry report

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2013-12-23

LONDON, UK--The P3 alliance (Maersk, CMA CGM, MSC) and the extension of the G6 alliance to cover the transpacific west coast and the transatlantic tradelanes will increase service frequencies to unprecedented levels on all three major east-west routes, provided they gain regulatory approval.

The impact on service frequency will be positive, according to London's Drewry Maritime Research. Assuming that the future G6 network will be the sum of the current New World Alliance and Grand Alliance services, frequencies between major ports will reach record levels. This means five direct weekly sailings from Shanghai to Los Angeles and four direct weekly services from Rotterdam to New York, the report said. 

To US inland destinations such as Chicago, which can be reached from Asia via Los Angeles/Long Beach or via Pacific Northwest ports and can be reached from Europe via New York, Norfolk or Montreal so there will be even higher frequencies of sailings. 

The P3 alliance would for both shippers and carriers result in lower underlying costs and improved industry stability.

 The report points out that some cargo owners will not want to have all their cargo moving under different carrier contracts but aboard the same alliance ships, and this can be managed to reduce the risk.

While the alliances will have an impact on the shipping sector, capacity shares and service frequencies,it will be a positive impact, just as carrier alliances and code-sharing arrangements have been for the airline sector, said Drewry.



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