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CMA CGM, Maersk Line, MSC to Establish Alliance for service Improvement

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CMA CGM, Maersk Line and MSC Mediterranean Shipping Company SA have agreed to establish a long-term operational alliance on East – West trades, called the P3 Network. The aim is to improve and optimize operations and service offerings.

The P3 Network will operate a capacity of 2.6 million TEU (initially 255 vessels on 29 loops) on three trade lanes: Asia – Europe, Trans-Pacific and Trans-Atlantic.

While the P3 Network vessels will be operated independently by a joint vessel operating center, the three lines will continue to have fully independent sales, marketing and customer service functions.

Improving services for the customers

The P3 Network will provide customers with more stable, frequent and flexible services.

Each of the lines will offer more weekly sailings in their combined Network than they do individually. As an example, the P3 Network plans to offer 8 weekly sailings between Asia and Northern Europe. In addition the P3 Network will offer more direct ports of call.

The improved P3 Network is expected to reduce the disruptions for customers caused by cancelled sailings.

In order to provide customers with a consistent service offering across the Network, the lines will establish an independent joint vessel operating center.

 Need for efficiency

Declining volume growth and over-capacity in recent years have underlined the need to improve operations and efficiency in the industry. This has prompted the creation of other operational alliances such as G6 and CKYH. Using the P3 Network the lines expect to be able to improve their efficiency through better utilization of vessel capacity.

Subject to approval

The lines intend to start operations in the 2nd quarter of 2014, but the starting date will be subject to obtaining the approval of relevant competition and other regulatory authorities.

In addition, the establishment of the P3 Network is subject to the lines agreeing on definitive contracts. Finalization and signing of the contracts is planned for the 4th quarter of this year.

The P3 Network will based on existing capacities of each member, initially operate a capacity of 2.6 million TEU (255 vessels)

Maersk Line will contribute with approximately 42% of the capacity, of about 1.1 million TEU. MSC will contribute with approximately 34% of the capacity, of about 0.9 million TEU. CMA CGM will contribute with approximately 24% of the capacity, of about 0.6 million TEU of capacity. Vessels contributed to the P3 Network will continue to be owned and/or chartered by the lines.

Vincent Clarc

Chief Trade and Marketing Officer in Maersk Line, Vincent Clerc, on the P3 Network:

We are pleased with this principal agreement to establish the P3 alliance with CMA CGM and MSC.

In recent years, Maersk Line has taken many initiatives to improve on the customer and products side and this alliance will be yet another step in this drive. It will provide our customers on the main trades with attractive, stable services and our Triple-E vessels will be implemented in the network without adding to the overcapacity on Asia-Europe.

Fuel consumption will also be reduced with significant benefits for the environment, and our operations will get even more efficient and competitive.”

CMA CGM, Maersk Line, June 18, 2013

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