The Mediterranean Shipping Company (MSC) is realigning its services by withdrawing its largest vessels from the Asia–North Europe route. According to Alphaliner, MSC's 19,200- to 24,300-TEU megamax ships will shift to the Asia-Mediterranean and Asia–West Africa trades. The Asia–North Europe corridor will now be serviced by ships averaging around 14,700 TEUs.
This move follows MSC's departure from the 2M Alliance with Maersk, marking its first month of independent operation on major east-west trades. Analysts indicate that reducing vessel sizes on the Asia–North Europe route may help manage capacity and stabilize declining freight rates.
Data from the Shanghai Containerized Freight Index (SCFI) show Shanghai–North Europe spot rates at $1,578 per TEU, a 44% drop over the first seven weeks of the year. Conversely, Shanghai–West Africa rates are stronger, averaging around $4,000 per TEU. This disparity suggests MSC is repositioning assets to capitalize on higher-yielding routes.
Market analysts note that the rate decline in Asia–North Europe services is more pronounced and accelerated than typical seasonal patterns. In contrast, Asia-Mediterranean trades follow conventional trends. With demand on the North Europe leg lagging, reducing capacity could ease downward pressure on spot rates.
MSC's vessel deployment shift occurs amid broader market concerns over excess capacity and weaker-than-expected cargo demand across key European ports. Deploying smaller vessels on the Asia–North Europe rotation may enhance schedule flexibility and operational efficiency. Meanwhile, redeploying larger tonnage to trades with more robust rate environments could optimize revenue.
Source: Freight News