Category: p3

Week 44 at a glance

2013, Week 44 – from October 27 to November 2

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Fleet & Finance

P3 setup

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P3 setup update: Europe – North America

Subject to regulatory approval, the proposed P3 alliance – Maersk Line, MSC and CMA CGM – plans to restructure the three carriers’ east-west mainline services. The new joint network will lead to a consolidation of strings and to an up-sizing of the vessel fleet.

The P3 alliance’s Transatlantic pattern will consist of five dedicated weekly services: Three North Europe loops and two Med slings.

Additionally, one Suez-routed Asia to USEC service which performs way calls at Algeciras (WB) and Tanger Med (EB) is expected to serve partially as a Med to USEC loop.

One further Suez-routed Asia to USEC features underway calls at Haifa (WB and EB), but can be omitted from the count of actual Transatlantic services as Haifa is not a major hub and volumes are expected to be limited.

It has to be noted that the P3 agreement does not cover all Transatlantic activities of Maersk Line, MSC and CMA CGM.

Offerings such as dedicated India and Middle East to USEC loops, Panama-routed Europe to ANZ services with USEC coverage, as well as Canada-related services, remain outside the scope of the P3.

In many cases, such services are offered in partnership with third parties outside the ‘big three’.

On the mainlines however, the P3 alliance’s Transatlantic network of five loops will succeed a pattern of seven loops.

Nevertheless, the alliance is expected to increase its Transatlantic capacity by some 15%, as the partner carriers will phase many large ships into the consolidated service structure.

In 2014, many of today’s 4,000 to 6.750 teu vessels trading between Europe and North America for P3 member lines, will be replaced or supplemented by 8,500 teu units.

Many such ships have become available since the Asia-Europe trunk routes are being boosted to capacities of 13,000 to 16,000 teu per week, with numerous newbuilt ultra-large vessels.

The P3 Europe / Med – North America setup looks as follows:

Northern Europe to USEC and US Gulf

North Atlantic / Liberty Bridge / TA1
Bremerhaven, Felixstowe, Rotterdam, Antwerp, Le Havre, New York, Baltimore, Norfolk, New York, Bremerhaven

South Atlantic / Victory Bridge / TA2
Antwerp, Rotterdam, Bremerhaven, Le Havre, Charleston, Freeport, Miami, Veracruz, Altamira, Miami, Savannah, Charleston, Antwerp

(MSC name) / Equality Bridge / TA3
Antwerp, Rotterdam, Felixstowe, Bremerhaven, Le Havre, New York, Charleston, Savannah, Houston, New Orleans, Mobile, Freeport, Norfolk, Antwerp

Mediterranean to USEC and US Gulf

(MSC name) / Amerigo / TA5
Gioia Tauro, Naples, La Spezia, Genoa, Fos-sur-Mer, Valencia, Sines, New York, Boston, Baltimore, Norfolk, Savannah, Charleston, Valencia, Gioia Tauro

(MSC name) / Med-Gulf / TA6
Gioia Tauro, La Spezia, Genoa, Barcelona, Valencia, Sines, Freeport, Port Everglades, Veracruz, Altamira, Houston, New Orleans, Miami, Freeport (Bah.), Sines, Algeciras, Barcelona, Gioia Tauro

Atlantic / Vespucci / (tbd) (as part of an Asia – USEC service with waycalls at the Gibraltar Strait hubs of Algeciras and Tanger)
(From Asia via Suez…), Valencia, Algeciras, New York, Savannah, Charleston, Tanger Med, Marsaxlokk, (…to Asia via Suez).

P3 setup update: Far East – North America

The P3 alliance’s Far East to North America network will consist of six Asia-WCNA loops and four Asia-USEC/US-Gulf loops.

Out of the former, five services will be aimed at the Pacific Southwest, meaning California, while one loop serves the Pacific Northwest, meaning Seattle and Vancouver.

The four Asia-USEC/US-Gulf loops comprise three Suez-routed loops and one service via the Panama Canal.

As far as the Asia-WCNA services are concerned, the P3 alliance’s six-loop pattern will very much resemble today’s service structure of Maersk Line, MSC and CMA CGM.

This is not particularly surprising since the three carriers already operate under a vessel sharing agreement on the transpacific tradelane since 2008.

One interesting aspect of the route setup is that MSC appears not to participate in the Pacific Northwest service. So far, MSC has only confirmed its participation in the Californian services, which cover the ports of Los Angeles, Long Beach and Oakland.

At least for the time being, the establishment of the joint P3 service structure will have little impact on the carriers’ overall capacity on this route.

Since the carriers all have long-standing ties or even shareholdings (through sister companies) in terminals on the US West Coast, the new P3 pattern might lead to some changes of terminals. This effect might also lead to some shifts between the twin ports of Los Angeles and Long Beach.

One interesting aspect of the P3 service pattern is that five out of six weekly strings are operationally merged into butterfly or pendulum services. Only the ‘Sunrise / Sunrise / TP5’ is a pure single-sling Transpacific service. The five remaining loops are all operationally paired with other slings – either into pendulum or butterfly services.

The reasons for this can be numerous: They can include more flexible vessel deployment, regular calls at ports with lower bunker prices, optimization of sailing speeds, etc… In case of pendulums, increased direct port coverage is also an advantage.

The P3 Far East – North America setup looks as follows:

Asia to Pacific South West (California)

Pearl / PRX1 / TP6 (this service is operationally grafted into a pendulum with the Asia-Europe service Lion / FAL2 / AE2)
(Europe and Middle East….), Singapore, Vung Tau (aka Cai Mep), Nansha, Hong Kong, Yantian (Shenzhen), Long Beach, Shanghai, Ningbo, Yantian (Shenzhen), Chiwan (Shenzhen), Tanjung Pelepas, (…Europe and Middle East),

Eagle / PRX2 / TP1 (this service is operationally grafted into a pendulum with the Asia-Med service Phoenix / PHOEX / AE12)

(Mediterranean…), Tanjung Pelepas, Chiwan (Shenzhen), Yantian (Shenzhen), Xiamen, Long Beach, Oakland, Busan, Ningbo, Shanghai, Hong Kong, Chiwan (Shenzhen), Yantian (Shenzhen), Singapore, (…Mediterranean)

Jaguar / Yangtze / TP2 (this service is operationally grafted into a butterfly with the Asia-USWC service New Orient / Bohai / TP8)
…, Kaohsiung, Hong Kong, Xiamen, Fuzhou, Shanghai, Ningbo, Long Beach, Dalian, Tianjin (aka Xingang), Qingdao, Shanghai,…)

New Orient / Bohai / TP8 (this service is operationally grafted into a butterfly with the Asia-USWC service Jaguar / Yangtze / TP2)
(…),Dalian, Tianjin (aka Xingang), Qingdao, Shanghai, Los Angeles, Oakland, Kaohsiung, Hong Kong, Xiamen, Fuzhou, Shanghai, Ningbo, (…)

Sunrise / Sunrise / TP5
Busan, Hakata, Nagoya, Yokohama, Long Beach, Oakland, Dutch Harbor, Yokohama, Kobe, Busan, Qingdao, Kwangyang

Asia to Pacific North West (Seattle and Vancouver)

(no MSC name) / Columbus / TP9 (this service is operationally grafted into the Asia-Europe service Empire / Columbus / TP11)
(USEC via Suez…), Tanjung Pelepas, Hong Kong, Yantian (Shenzhen), Shanghai, Busan, Seattle, Vancouver (Can), Yokohama, Shanghai, Ningbo, Hong Kong, Yantian (Shenzhen), (…USEC via Suez)

Asia to USEC

Empire / Columbus / TP11 (this service is operationally grafted into the Asia-Europe service Empire / Columbus / TP9)
(PNW…) Tanjung Pelepas, Hong Kong, Yantian (Shenzhen), Suez Canal (way point), New York, Norfolk, Savannah, Suez Canal (way point), Tanjung Pelepas, Hong Kong, Yantian (Shenzhen), Shanghai, Busan, (…PNW).

America / (tbd) / TP12
Shanghai, Xiamen, Chiwan (Shenzhen), Yantian (Shenzhen), Singapore, Salalah, Suez Canal (way point), Haifa, New York, Baltimore, Norfolk, Savannah, Freeport (Grand Bahama), Haifa, Suez Canal (way point), Salalah, Colombo, Singapore

Atlantic / Vespucci / (tbd)
Shanghai, Tanjung Pelepas, Suez Canal (way point), Valencia, Algeciras, New York, Savannah, Charleston, Tanger Med, Marsaxlokk, Suez Canal (way point), Kaohsiung, Ningbo, Shanghai

Everglades / PEX3 / (tbd)
Ningbo, Shanghai, Qingdao, Busan, Panama Canal (waypoint), Manzanillo (Pan), Miami, Houston, Mobile, Panama Canal (waypoint), Vostochny, Yantian (Shenzhen), Ningbo.

Note that some services to America, such as for example loops to the Canadian East Coast, appear to be excluded from the P3 partnership. Here, the carriers will maintain their individual service solutions – often in partnership with carriers outside the P3.

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See earlier P3 updates:

P3 setup update: Far East – Med

As reported earlier, the proposed Far East to Europe network of the P3 will consist of five dedicated weekly Mediterranean loops, in addition to eight northern Europe services. Further to this, two Suez-routed Asia to USEC services will feature Med calls and at least one of them will therefore double as a Far East to Med and Med to USEC link.

Out of the five Far East to Med loops, two will focus on the west Med, one on the Aegean (east Med), one on the Adriatic (east Med), and one on the Black Sea and Marmara Sea.

One wayporting USEC service, the ‘Atlantic / Vespucci’, will cover the west and central Med with westbound calls at Valencia and Algeciras, and eastbound calls at Malta. Since these ports are major hubs, Med-related volumes on this loop will be substantial.

The other wayporting USEC service, the ‘America / TP12’, features east and westbound calls at Haifa, Israel. Since, contrary to Valencia, Algeciras and Malta, Haifa is not a major hub, Med-volumes on this service will probably be moderate.

Operationally, one of the five Med-related services, the ‘Phoenix / PHOEX / AE12’, will be part of a wider Med-Far East-USWC pendulum.

Two of the P3 Asia-Med services will incorporate calls at King Abdullah City, a new Saudi Arabian port on the Red Sea,

In contrary to the P3’s Asia to northern Europe loops, which use Tanjung Pelepas as a Straits hub, Singapore takes this role for the Mediterranean services.

The dedicated Med and Black Sea services look as follows:

Dragon / WMED1 / AE20 – West Med – Far East
Genoa, Fos-sur-mer, Valencia, Gioia Tauro, Port Said, Suez Canal (way point), King Abdullah City, Port Kelang, Singapore, Xiamen, Dalian, Tianjin (aka Xingang), Busan, Ningbo, Shanghai, Xiamen, Chiwan (Shenzhen), Yantian (Shenzhen), Singapore, Port Kelang, King Abdullah City, Suez Canal (way point), Marsaxlokk, La Spezia, Genoa.

Jade / WMED2 / AE11 – West Med – Far East
Valencia, Barcelona, Fos-sur-mer, La Spezia, Gioia Tauro, Suez Canal (way point), Salalah, Khor Al Fakkan, Jebel Ali, Abu Dhabi (Mina Khalifa), Singapore, Qingdao, Shanghai, Ningbo, Nansha, Chiwan (Shenzhen), Yantian (Shenzhen), Singapore, Suez Canal (way point), Gioia Tauro, Valencia.

Tiger / AEGEX / AE15 – Aegean – Far East
Ambarli (Istanbul), Izmit, Piraeus, Marsaxlokk, Port Said, Suez Canal (way point), King Abdullah City, Jebel Ali, Khor Al Fakkan, Singapore, Yantian (Shenzhen), Qingdao, Busan, Shanghai, Ningbo, Xiamen, Yantian (Shenzhen), Chiwan (Shenzhen), Singapore, Suez Canal (way point), Port Said, Beirut, Ambarli.

Great Sea / BEX / AE3 – Black Sea – Far East
Constantza, Odessa, Ilyichevsk, Ambarli (Istanbul), Piraeus, Port Said, Suez Canal (way point), Singapore, Xiamen, Busan, Qingdao, Shanghai, Ningbo, Yantian (Shenzhen), Chiwan (Shenzhen), Singapore, Port Kelang, Suez Canal (way point), Izmit, Ambarli (Istanbul), Constantza.

Pendulum Phoenix / PHOEX / AE12 – Adriatic – Far East / USWC
Koper, Trieste, Rijeka, Port Said, Suez Canal (way point), Tanjung Pelepas, Chiwan (Shenzhen), Yantian (Shenzhen), Xiamen, Long Beach, Oakland, Busan, Ningbo, Shanghai, Hong Kong, Chiwan (Shenzhen), Yantian (Shenzhen), Singapore, Suez Canal (way point), Port Said, Koper

P3 setup update: Far East – Europe

As reported earlier, the proposed Far East to (Northern) Europe network of the P3 will consist of eight weekly loops. This compares to the present set up of nine loops for Maersk, MSC and CMA CGM. The one-loop reduction will not have any meaningful capacity effect since larger ships, mainly in the form of 18,270 teu Maersk-EEE classes, are being phased-in successively.

The P3 service restructuring will see consolidation of Southeast Asia transhipment hub calls toward Tanjung Pelepas, at the expense of Singapore and Port Kelang.

Two services, the ‘Baltic / FAL7 / AE8’ and the ‘Skaw / FAL8 / AE9’ will feature direct calls in the Baltic Sea. One of the loops will reach as far as Poland, while the other will only call at Gothenburg, Sweden. Maersk Line had pioneered direct calls in the Baltic Sea with large Asia-Europe mainline tonnage, but the participation in such slings is new for MSC and CMA CGM.

The low number of calls at Rotterdam, Europe’s largest container port, comes as a major surprise. Depending upon the future patterns of feeder services and on-carriage, both Antwerp and Bremerhaven appear to benefit from the changes. Most other ports will roughly see the same number of calls as now (or one less call because of the overall reduction in loops).

The eight Far East to Europe loops look as follows (MSC name / CMA CGM name / Maersk Name):

Albatros / FAL1 / AE1: 9x 19,000 teu
Rotterdam, Bremerhaven, Wilhelmshaven, Tanger Med, Suez Canal (way point), Tanjung Pelepas, Yantian (Shenzhen), Ningbo, Shanghai, Xiamen, Tanjung Pelepas, Suez Canal (way point), Algeciras, Tanger Med, Rotterdam.

Pendulum, Lion / FAL2 / AE2: 16×11,500 teu
Zeebrugge, Dunkirk, Southampton, Le Havre, Marsaxlokk, Suez Canal (way point), King Abdullah City, Jeddah, Singapore, Vung Tau (aka Cai Mep), Nansha, Hong Kong, Yantian (Shenzhen) / USWC / Shanghai, Ningbo, Yantian (Shenzhen), Chiwan (Shenzhen), Tanjung Pelepas, Sines, Antwerp, Zeebrugge.

Shogun / FAL3 / AE5: 11×13,000 teu
Le Havre, Felixstowe, Bremerhaven, Wilhelmshaven, Rotterdam, Suez Canal (way point), Colombo, Tanjung Pelepas, Hong Kong, Kobe, Nagoya, Yokohama, Ningbo, Shanghai, Hong Kong, Yantian (Shenzhen), Tanjung Pelepas, Suez Canal (way point), Le Havre.

Condor / FAL5 / AE6: 10×8,500 teu
Southampton, Hamburg, Bremerhaven, Felixstowe, Zeebrugge, Le Havre, Algeciras, Beirut, Suez Canal (way point), Port Kelang, Chiwan (Shenzhen), Ningbo, Shanghai, Xiamen, Hong Kong, Chiwan (Shenzhen), Tanjung Pelepas, Port Kelang, Suez Canal (way point), Southampton.

Swan / FAL6 / AE7: 11×13,000 teu
Rotterdam, Hamburg, Bremerhaven, Antwerp, Suez Canal (way point), Tanjung Pelepas, Shanghai, Busan, Dalian, Tianjin (aka Xingang), Qingdao, Ningbo, Shanghai, Chiwan (Shenzhen), Yantian (Shenzhen), Tanjung Pelepas, Suez Canal (way point), Rotterdam.

Baltic / FAL7 / AE8: 12×14,000 teu
Bremerhaven, Gdansk, Aarhus, Bremerhaven, Felixstowe, Suez Canal (way point), Singapore, Chiwan (Shenzhen), Busan, Kwangyang, Shanghai, Yantian (Shenzhen), Tanjung Pelepas, Suez Canal (way point), Bremerhaven.

Skaw / FAL8 / AE9: 12×13,000 teu
Felixstowe, Bremerhaven, Gothenburg, Rotterdam, Antwerp, Le Havre, Suez Canal (way point), Salalah, Khor Al Fakkan, Jebel Ali, Singapore, Chiwan (Shenzhen), Qingdao, Ningbo, Shanghai, Nansha, Yantian (Shenzhen), Tanjung Pelepas, Colombo, Suez Canal (way point), Felixstowe.

Silk / FAL9 / AE10: 12×13000 teu
Le Havre, Antwerp, Hamburg, Felixstowe, Gioia Tauro, Suez Canal (way point), Khor Al Fakkan, Jebel Ali, Singapore, Yantian (Shenzhen), Tianjin (aka Xingang), Kwangyang, Busan, Qingdao, Shanghai, Ningbo, Chiwan (Shenzhen), Singapore, Suez Canal (way point), Le Havre.

P3 alliance setup unveiled

After weeks of speculation over the possible structure of the P3 alliance’s joint mainline network, the Mediterranean Shipping Company has taken the lead and unveiled the carrier group’s proposed east-west core services. Subject to regulatory approval, the new joint network is to be implemented in the first quarter of 2014.

The P3 alliance will see the word’s three largest shipping lines, Maersk, MSC and CMA CGM, forge a close-cooperation on all major east-west trade lanes. While the carriers will continue to compete with each other over cargo and while they will independently price and market their services, they will enter into a close cooperation as far as schedules and capacity sharing are concerned.

A joint vessel coordination centre is to be established at London, from where the new joint services are to be managed.

The P3 alliance’s loop network will look as follows (using MSC service names):

Far East to Northern Europe – 8 weekly services

  • Albatros
  • Lion
  • Shogun
  • Condor
  • Swan
  • Baltic
  • Skaw
  • Silk

Far East to Med and Black Sea – 5 weekly services

  • Dragon
  • Jade
  • Tiger
  • Phoenix
  • Great Sea

Far East to US West Coast – 5 weekly services

  • Pearl
  • Eagle
  • Jaguar
  • New Orient
  • Sunrise

Far East to US East Coast – 4 weekly services

  • Empire
  • America
  • Atlantic
  • Everglades

Northern Europe to North America – 3 weekly services

  • US-North Atlantic
  • US-Mexico South Atlantic
  • US Gulf

Med to North America – 2 weekly services

  • Medusa
  • MedGulf