Counting the cost

Denmark’s Sydbank believes Maersk Line will miss out on cost savings of $1bn after it abandoned its P3 Network plan.

Chinese regulators rejected the huge containership tie-up with MSC and CMA CGM on Tuesday, saying it could eliminate or restrict competition in the Asia-Europe market.

Sydbank analyst Jacob Pedersen said: “This is very negative for Maersk. They won't achieve about $1bn in cost savings, equivalent to 5-6% of unit costs."

AP Moller-Maersk group CEO Nils Andersen admitted to surprise at the Chinese decision.

The company had hoped to realise significant cost savings and emissions reductions through the alliance.

But Andersen added: "Nevertheless, I'm quite confident Maersk Line will accomplish those improvements anyway."