Mediterranean Shipping (MSC) has the ability to launch a stand-alone network to compete with the restructured alliance and offer Red Sea and Suez Canal service options, indicating that the company has built up huge scale over the past few years. The world's largest container carrier will exit its 2M alliance with Marsky, which expires in January next year, to prepare for its new direction, the company this week announced a comprehensive network coverage plan, along with two slot swap agreements that MSC described as “independent, competitive And complete.”
The Geneva-based shipping company has a fleet of 600 million standard cases and an additional 200 million standard cases on order, will deploy ships on major trade routes and use strategic cabin sharing agreements to plug any vulnerabilities.
MSC CEO Soren Toft This Week“Business Magazine”Says: “We announce the creation of a comprehensive independent network and combine these two slot exchanges (With the new Premier Allianceand Zim Integrated Shipping Services), we believe we can deliver a better scalable product compared to 100% relying on ourselves.”
Starting in February, MSC will provide an independent network with “full operational control” of 34 loops across five routes: Asia-North American West Coast (4), Asia-North American East Coast (6), Asia-Europe (7), Asia-Mediterranean (6) and Transatlantic (11).
The company will provide customers with independent routes through the Suez Canal and the Point of Good Hope, offering more than 1,900 direct port pairs at Suez options, as well as more than 1,800 port pairs throughout Southern Africa. TOFT SAID OPTIONS FOR THE RED SEA AND SUEZ ROUTES FOR ASIA-EUROPE, ASIA-MEDITERRANEAN AND ASIA-EAST COASTS ARE INCLUDED TO COVER CONTRACT NEGOTIATIONS FOR THE FOURTH QUARTER OF TRADE ROUTES, ALTHOUGH HE EXPECTS NOTHING TO CHANGE AT THE TIME WHEN THE NEW NETWORK WILL BE LAUNCHED IN FEBRUARY.
The dissolution of 2M sparked the largest alliance reorganization in 10 years, with Herbrot (HAPAG) exiting the alliance and joining Masky in a partnership with Gemini, resulting in Ocean Network Express (ONE), Yangming Maritime Shipping and Modern Merchant Shipping renaming the ship sharing agreement Premier Alliance. Premier and Gemini will also be launched in February.
Although Gemini willIts future is focused on the central radiation model,The model will be built around dozens of container transport shuttles to and from key regional key hub ports, but Toft said MSC will continue to stick to its traditional port to port model service. “We believe the demand for direct solutions remains high and the new network will reduce forwarding, which is often a cost that customers don't like.”
Toft was tolerant of Gemini's strategy, but said MSC would not take that approach.
