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 approval 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 enable [P3] operators to become a close-knit alliance, commanding 47 per cent 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 network as initially 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." 

Said a CMA CGM statement: "Based on the decision, Maersk Line, MSC and CMA CGM have agreed to end P3 implementation."

The one dissenter from the US Federal Maritime Commission's otherwise unanimous vote of approval of P3 in March was that of former FMC chairman Richard Lidinsky, who said he was pleased with China's decision. 

"This would allow the controlling carrier the ability, when coupled with existing discussion agreements, to deploy its assets along with those two other carriers, to dominate competition and narrow shipper options," he said.

Also pleased was, China Shippers' Association as well as Asia Shippers' Council vice-chairman Cai Jiaxiang, who said: "We welcome the ministry's decision, which is a very wise one. The ministry's analysis entirely reflects the reality. P3 indeed excludes competition."

Also pleased was the European Shippers' Council (ESC), having already expressed "concern about the risk of dominant situation created by an alliance that could represent 44 per cent of market shares for trades between China and Europe".

The Ministry of Commerce announced the decision on its website that the proposed P3 would "restrict competition" on the Asia-Europe routes. 

But Maersk group CEO Nils Andersen expressed surprise. "The partners have worked hard to address all the regulators' concerns," he said. 

Said Maersk marketing chief Vincent Clerc: "We have worked hard to address the Chinese concerns. P3 would have provided Maersk Line with a more efficient network and our customers with a better product." 

But Mr Clerc hoped for wiggle room yet. "What was prohibited is one form of co-operation. Other forms, future forms are still possible and we need to explore them and see the best way forward," he said.

P3, which had leased offices in London as a base for its standalone vessel operating company, now must re-integrate staff into the company. Maersk's Lars Mikael Jensen was to have been CEO of the arm's length operations unit.

The three carriers were to commit 255 vessels deployed on 29 services. Maersk, which moves 15 per cent of all the world's containers, were expected to contribute 42 per cent of the tonnage.