MSC is cutting capacity on India to North Europe and Mediterranean routes due to tightening regional volumes, impacting vessel sizes and calls.
Mediterranean Shipping Co (MSC) will cut capacity on trades from India to North Europe and the Mediterranean as regional volumes tighten, reports London's S&P Global.
Sources indicate that MSC will reduce the average vessel size on its Himalaya Express service from 14,000 TEU to about 9,000 TEU, and on the IPAK service from 9,000 TEU to 8,000 TEU. These changes are expected to take effect in March. Additionally, the HEX will replace its call at Valencia with a stop at Sines in Portugal.
The adjustments follow India's decision to revoke cabotage waivers for foreign-flag carriers starting next month, a move aimed at encouraging the growth of the domestic fleet. Analysts suggest that this policy could reduce transshipment volumes at Indian ports and shift cargo to Colombo in Sri Lanka.
MSC has heavily relied on Indian gateways such as Mundra and Vizhinjam, supported by partnerships with Adani Ports. Last year, the carrier reorganized its Himalaya Express berthing window at Nhava Port, shifting calls from DP World to PSA International's terminal to accommodate larger ships, including the 24,346-TEU MSC Micol in December.
The Container Shipping Lines' Association of India has warned that the policy reversal could undermine hub development at Indian ports and constrain vessel calls. They stated that expansion plans at Mundra and Vizhinjam may not proceed without the waiver, further limiting transshipment growth.
