CHINA has blocked the P3 mega alliance forged by Maersk, CMA CGM and MSC,  the world's three biggest shipping lines, because it appeared to provide more benefits to its members and too few to its customers- and none at all to its rivals. 

The sorry fate of the P3, widely supposed to dominate world shipping in years to come, has humbled the world's three biggest shipping lines, by China's power to control the vital Asia-Europe trade lane. 

Despite aproval of the US Federal Maritime Commission in March, with one dissenting vote, and acceptance from the European Commission, China's Ministry of Commerce said no to the P3 because it would " restrict competition". 

Said Beijing: "Based on market share, market access and industry characteristics, the concentration will enalbe [P3] operators to become a close-knit alliance, commanding 47 percent market share in the Asia-Europe liner  service."

To this, Maersk said: " The partners have agreed to stop the preparatory work on the P3 network and the P3 netwrok as iinitially planned will not come into existence."

MSC said it will continue to review options as to how it can continue to become more cost efficient and improve service in the absence of the P3. 

Said MSC vice president Diego Aponte: "We are disappointed by the decision of the Chinese Ministry of Commerce, but will continue our efforts to operate  more efficiently and provide clients comprehensive and excellent service."