China rejects application by Maersk, MSC, CMA CGM to form shipping alliance, citing concern that pact will curb competition on Asia-Europe shipping market; three shipping lines have agreed to stop work on proposed alliance, Maersk says

Cindy Allen

June 17, 2014 (Bloomberg LP) – China rejected an application by A.P. Moeller-Maersk A/S, MSC Mediterranean Shipping Co. and CMA CGM S.A. to form a shipping alliance on concern it will curb competition on the Asia-Europe shipping market.

Shares of A.P. Moeller-Maersk, the world’s biggest container line, fell as much as 8.1 percent, the biggest decline since September 2009.

The three shipping lines have agreed to stop work on the proposed network, Maersk A/S said in a statement today.

Maersk Line, Mediterranean Shipping Co. and CMA CGM SA in June last year proposed setting up a network comprising 255 vessels on 29 loops. The lines were to cooperate on the world three largest trade lanes: Asia to Europe, transpacific and transatlantic.

To contact the reporter on this story: Clement Tan in Hong Kong at ctan297@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net

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