The world’s three biggest container-shipping companies said they plan to set up an alliance to operate three routes in an effort to tackle one of the worst declines in the industry.

Denmark’s Maersk Line, Switzerland’s Mediterranean Shipping Co. and France’s CMA CGM plan to kick off the P3 Network alliance on the Asia-Europe, trans-Pacific and trans-Atlantic routes in the second quarter of next year, operating a combined 255 vessels with a capacity of 2.6 million containers.

With freight rates down by more than half since the start of the year on the benchmark Asia-Europe route, the carriers hope that combining forces will allow them to cut costs and better contend with smaller rivals operating smaller and less fuel-efficient ships.

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