GENEVA's Mediterranean Shipping Company (MSC) is to plug a gap in its coverage between Asia and the east coast of America by joining the loop operated by Chilean carrier CSAV, China Shipping and CMA CGM.
It will join the ASAX 1/SEAS loop, which is already plied by vessels of average capacity 6,227 TEU: six from CSAV, three from China Shipping and two from CMA CGM.
Port rotation is Busan, Shanghai, Ningbo, Shenzhen-Chiwan, Hong Kong, Port Kelang, Santos, Montevideo, Buenos Aires, Rio Grande, Paranagua, Santos, Durban, Port Kelang, Hong Kong and back to Busan.
Rationalisation is expected by December 24 which will put pressure on rates for the Asia-east coast South America lanes already struggling with over capacity, according to a recent newsletter from maritime consultant Dynamar, cited a report from American Shipper.
"Perhaps even more than in the North Europe-Far East trade, the MSC-CMA CGM pact impact will be felt in South America and may not bode well for the rates," it added, noting the growing order form of MSC in 18 ships of 8,000-9,000 TEU, plus options on another four with 1,000 reefer plugs each likely to be used on South American trades.
This follows on from MSC's recent alliance with CMA CGM, although it is unclear if this service comes under its decision to jointly cover trades to South America, or its partnership with CSAV which mainly joined the Swiss carrier's operated services.
It has also joined with CMA CGM on the Oceania-North American services to grow from two services to five by March with Maersk Line, Hamburg Sud, Hapag-Lloyd and a CMA CGM unit ANL.
