Maersk Sees US Approval of Shipping Alliance as Formality

Posted by Michelle Howard September 17, 2014

Nils Andersen

U.S. regulatory approval of a proposed shipping alliance involving AP Moeller Maersk should be a formality, the Danish company's chief executive said on Wednesday.

The alliance between Maersk and Swiss-based Mediterranean Shipping Co (MSC), the two largest container shippers in the world, will run 185 shared vessels on the trans-Atlantic, trans-Pacific and Asia-Europe routes, critical paths in global trade.

The deal, known as 2M, was struck after a previous planned tie-up between Maersk, MSC and France's CMA CGM was undone by China's opposition, despite gaining clearance from the U.S. Federal Maritime Commission (FMC).

Asked if the FMC would approve the alliance by Oct. 11, an initial deadline set 45 days after submission of regulatory papers, Maersk chief Nils Andersen said, "I have no opinion on that but we believe that the approval should be a formality as they had already approved P3."

Anderson was speaking to Reuters on the sidelines of a Danish Shareholders Association conference.

The Wall Street Journal reported last week that Maersk and MSC executives were travelling to Washington for urgent talks with the FMC. A Maersk spokesman declined to say if any meeting took place last week, but said the company was in dialogue with the FMC, as was normal.

The alliance, which the shippers say cuts costs, fuel usage and emissions, is due to start in early 2015. Detractors say an alliance of such large shippers could lead to dominance on key trade routes carrying consumer goods around the world.

Maersk and MSC have stressed the smaller and different nature of their agreement, compared with 3P, which would have involved the setting up of an operating company and could have pressured Chinese shippers.

Maersk has said 2M requires just the submission of papers to Chinese, EU and U.S. regulators, which would receive automatic approval as long as there were no objections.

But some doubts linger, given the decision in June by China's Commerce Ministry came as a surprise, including to Maersk, and followed approvals by Washington and Brussels.

Chinese media cited the head of the anti-monopoly division within the ministry as criticising 2M on monopoly grounds. Maersk says the ministry has no say over the deal this time.