Maersk upsizes vessels on its MECL service, adding 3,000 TEU weekly capacity through 2026, following US tariff reductions on Indian goods.
Maersk plans to upsize vessels on its West India-US East Coast 'MECL' service, adding incremental weekly capacity of up to 3,000 TEU through 2026, following US tariff reductions on Indian goods, reported London's S&P Global.
Industry sources said the carrier will begin with an extra 750-800 TEU per week in the second quarter, coinciding with new contract shipments. Current MECL ships range between 6,000 and 8,000 TEU, with transit times of 25 days from Nhava Sheva to Newark.
Bhavik Mota, Maersk's director of regional ocean management for India, the Middle East, and Africa, said cargo flows are expected to materialize from April as production cycles align. He noted that tariff cuts from 50 percent to 25 percent, with a further reduction to 18 percent expected, improve trade economics.
Exports from India to the US East Coast rose 20 percent in January to 76,550 TEU, marking the first monthly increase since August. Spot rates, however, have fallen sharply, down to $1,173 per FEU in February from $2,200 in August, according to Platts.
Analysts warned that a large capacity influx could weigh on contract rate negotiations if demand does not accelerate. Maersk has also announced a peak season surcharge of $3,000 per container from March 20 for loads from the Indian subcontinent and Middle East to the US East and Gulf coasts.
