ITF calls for careful consideration over P3 network

20 December 2013

ITF calls for careful consideration over P3 network following global summit

The ITF (International Transport Workers’ Federation) is making a call for careful consideration and consultation over a proposal to create the largest ever shipping alliance to operate on global trades.

It comes in the wake of a Federal Maritime Commission (FMC) summit this week which was called between US, EU and Chinese delegates to discuss the P3 network.

The network, consisting of Maersk Line, CMA CGM and Mediterranean Shipping Company (MSC), would offer a total of 29 loops, served by 255 vessels initially, and a capacity of 2.6 million TEU.

It had been planned for the network to come officially into effect from early December, but it was postponed following a request from the FMC for more information from the parties involved. Once this information is submitted by the carriers it is understood there will be a 45-day regulatory period before a final decision is made.

ITF president and dockers’ section chair Paddy Crumlin said: “If approved without careful consideration of all its potential impacts, the agreement would be the largest of its kind and could present a huge risk of anti-competitive practices on a global scale.

“The ITF’s primary concern is obviously the effect that this agreement could have on workers, and many of our affiliate unions see the collective power of the P3 carriers as a significant threat to their industry if there are no safeguards in place to protect employment and labour standards.”

He continued: “Our experience is that where economies of scale similar to those suggested here are achieved in the industry, the benefits are not passed through the supply chain to contractors, customers or the workforce, but retained within the company accounts or in shareholder dividends. This proves no real benefit to the economy.”

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