THE Mediterranean Shipping Co (MSC), the world's biggest shipping company, among others, has told US shippers to collect their cargo at whatever diversion port can be found now that Baltimore has been closed to cope with its collapsed bridge disaster, reports NBC News.
MSC joins other ocean carriers to make the declaration to customers in recent days after the Francis Scott Key bridge collapse.
In an email to customers obtained, MSC explained that for customer containers already on the water bound for the Port of Baltimore, cargo will be rerouted and discharged at an alternate port where it will be made available for pick-up.
'For these shipments, the contract of carriage will be declared terminated at this alternate port and storage, D&Ds and on-carriage costs to the initially intended destination will be for the sole cargo's account,' said the MSC advisory.
MSC added that 'passage to and from Baltimore is at this time impossible and will not be re-established for several weeks if not months.'
CMA CGM, Cosco and Evergreen were the first carriers to announce similar moves and in some cases formally declare 'force majeure,' a legal term which refers to the right to waive contract duties when events beyond a party's control occur.
US Transportation Secretary Pete Buttigieg met with supply chain experts to discuss the port closure and diverted trade.
With the Baltimore port indefinitely closed, the decision places the onus of cargo pick up at a diverted port and transport to its final destination on the shipper.
MSC said in its customer communication that it 'apologises for the disruption caused by this contingency plan which is required in response to events beyond our control, but which is taken in compliance with the terms of the contract of carriage.'
Maersk is the only major carrier to say it will provide transport from diverted ports for customers.
Maersk was the charterer of the 10,000-TEU Dali that lost control and crashed into the Francis Scott Key Bridge.
After the pandemic boom which led to historic profits, ocean carriers have been through a period of financial and operational challenges, with vessel overcapacity, declining earnings, and the Red Sea Houthi attacks and Panama Canal drought leading to costly diversions from major global trade routes.
SeaNews Turkey
MSC joins other ocean carriers to make the declaration to customers in recent days after the Francis Scott Key bridge collapse.
In an email to customers obtained, MSC explained that for customer containers already on the water bound for the Port of Baltimore, cargo will be rerouted and discharged at an alternate port where it will be made available for pick-up.
'For these shipments, the contract of carriage will be declared terminated at this alternate port and storage, D&Ds and on-carriage costs to the initially intended destination will be for the sole cargo's account,' said the MSC advisory.
MSC added that 'passage to and from Baltimore is at this time impossible and will not be re-established for several weeks if not months.'
CMA CGM, Cosco and Evergreen were the first carriers to announce similar moves and in some cases formally declare 'force majeure,' a legal term which refers to the right to waive contract duties when events beyond a party's control occur.
US Transportation Secretary Pete Buttigieg met with supply chain experts to discuss the port closure and diverted trade.
With the Baltimore port indefinitely closed, the decision places the onus of cargo pick up at a diverted port and transport to its final destination on the shipper.
MSC said in its customer communication that it 'apologises for the disruption caused by this contingency plan which is required in response to events beyond our control, but which is taken in compliance with the terms of the contract of carriage.'
Maersk is the only major carrier to say it will provide transport from diverted ports for customers.
Maersk was the charterer of the 10,000-TEU Dali that lost control and crashed into the Francis Scott Key Bridge.
After the pandemic boom which led to historic profits, ocean carriers have been through a period of financial and operational challenges, with vessel overcapacity, declining earnings, and the Red Sea Houthi attacks and Panama Canal drought leading to costly diversions from major global trade routes.
SeaNews Turkey
