The Asian Shippers Council (ASC) has hit out at the planned P3 Alliance saying “such a concentration of capacity as untenable”.

The ASC welcomed a recent move by the US Federal Maritime Commission (FMC) to hold a summit to discuss the proposed alliance of Maersk Line, Mediterranean Shipping Co (MSC) and CMA CGM. The shippers’ group described the alliance as “far too big”.

“Such a concentration of capacity is untenable. We fear the worst should the regulatory authorities give it approval,” said John Lu, chairman of ASC.

The ASC fears the new alliance will accelerate the demise of smaller players. In particular the Asia – Europe trade is now only served by major lines, mainly through alliances such as G6.

“With fewer service providers, we can only imagine the effect it will have on freight rates and service levels,” Lu said. The shippers’ group said it feared the alliance would bring about more price wars and rate volatility.

With the FMC focus on the alliance the ASC is hopeful regulators will step in. “The P3 is not a done deal – not by a mile – whatever the alliance may think. We are delight the FMC has the meeting of regulatory authorities,” Lu said.