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ETC International Freight System is offering direct air traffic consigned to the ultimate consignee whether you need a few small boxes courier to a door or a commercial, industrial air shipment to the destination international airport or the door location.

ETC International Freight System has weekly air consolidation services to world destinations where your shipment among others will be consigned to an overseas freight agent. Your consignee contacts the agent and arrange for the customhouse brokerage & delivery. Dlivery duty paid or unpaid can also be priced and prepaid by the shipper.

ETC International Freight System (1-800-383-3157) can get you a spot rates for your commercial or industrial air shipments. Please call or email our office for a spot rate.

ETC International Freight System pick up and delivery services visit our web site at www.etcinternational.com and click on the get a quote button.

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China’s rejection of P3 Network

Content by JOC

Ocean container shipping

Container lines considering launching major highly structured vessel-sharing agreements in Chinese trade lanes would be wise to consider factors other than just market share, said an attorney
familiar with Chinese transportation policy.

China’s surprise rejection of the P3 Network an ambitious VSA involving Maersk Line, Mediterranean Shipping Co. and CMA CGM was fueled largely by its concerns that the three largest global carriers would have controlled up to 47 percent of capacity in the Asia-Europe trade, said Richard Gluck, of the law firm Garvey Schubert Barer. But Chinese authorities looked beyond just market share and how the P3 fit into the country’s industrial policy, he said.

Gluck said the rejection of the P3 on June 17 was more about wanting to ensure affordable rates for exports and imports than protection of its top two national carriers, Cosco and
China Shipping, as many in the industry have speculated.

“They looked at the deal on not just how it would affect the shipping industry but China’s economy, jobs in China and the five-year plan,” Gluck said, quoting the maxim that the U.S. is
run by lawyers, while China is run by engineers and economists.

The P3 carriers tried several times to amend the VSA to the satisfaction of Chinese authorities, but the Anti-Monopoly Bureau of China’s Ministry of Commerce, known as MOFCOM, didn’t
find the proposed remedies sufficient, according to a report by global legal firm Skadden, Arps, Slate, Meagher & Flom LLP & Affiliates.

It’s important not to view China’s regulatory process through a Western lens, Gluck said. MOFCOM didn’t make the decision solely, having consulted with the National Development and Reform Commission, the arm of the state council. This is the rough equivalent of the U.S. Federal Maritime Commission consulting with the White House on whether to allow the P3 to operate in the trans-Atlantic and trans-Pacific trade lanes.

In an analysis of the MOFCOM’s decision, Skadden noted Chinese authorities took issue with the VSA going beyond the traditional loosely structured format to “a tightly, jointly
operated concentration in which only the technical management of individual
vessels remained independent from an operating perspective.”

The decision also said the pact would raise barriers to entry into the market, though the law firm noted MOFCOM didn’t support the finding with detailed analysis. The pact would also “squeeze development” of other carriers, the law firm said in its analysis of the MOFCOM
decision. Aside from claiming the P3 would “significantly enhance” the market power of the parties, according to a translation of its decision, MOFCOM also pointed out how the degree of concentration would rise using the Herfindahl-Hirschman Index, a metric used by the U.S. Department of Justice. China’s use of the index shouldn’t be surprising since it modeled its roughly 5-year-old maritime regulatory process on that of the FMC.

“China focuses on what’s good for China. They are not going to be swayed by what the U.S. and Europeans do,” said Gluck, referring to how FMC allowed the P3 to go forward and the European Union said the pact didn’t raise any immediate anti-competitive concerns. 

More at JOC.com

Today, the long anticipated strike started at the Long Beach, Los Angeles port.

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