Maersk Line and Mediterranean Shipping Co.’s (MSC) 2M prospective vessel sharing agreement may undergo additional scrutiny if market share between the two carriers is not reduced to 30%.
Non-Chinese container lines are not able to control more than 30% of major China trade lanes under the People’s Republic of China International Marine Regulation, according to the Journal of Commerce.
Zhang Shouguo, vice president of the China Shipowners’ Association, said: “Given their current capacity, Maersk and MSC’s market shares in Asia-Europe routes will be over 30%.”
The two container lines may undergo government investigation if their vessel-sharing agreement is not adjusted to comply with the Chinese International Marine Regulation.
Currently, carriers are required to file agreements within 15 days of finalising its plans, under Chinese regulation.
Jens Eskelund, senior director at Maersk China said: “In China, we have an obligation to file VSAs with authorities, but there is no approval procedure as such.”
The 2M agreement already conforms to EU law and has also received the go-ahead from the US.
The 2M agreement allows Maersk and MSC to assimilate their services into fewer but larger ships. As a result, the average cost per-container is lower compared to alliances that utilise smaller vessels.