MEDITERRANEAN Shipping Co (MSC) is revamping its service network between India and the US, adding a new string and revising its two existing loops, amid a widespread shortage of vessel space and equipment across all US-bound trade lanes, reports IHS Media.
The Geneva-based container carrier will commence the weekly Indus 2 service August 30 from Mundra with eight vessels of around 8,500 TEU in capacity, according to a customer advisory. In addition to Mundra, the Indus 2 will stop at Jawaharlal Nehru Port Trust (JNPT) in India and Gioia Tauro and Sines in the Mediterranean before calling at Norfolk, Baltimore, Miami, and Freeport, Bahamas.
The service brings a new weekly call to the Port of Baltimore at a time when gateways across the US are under pressure from a seemingly unending stream of imports from Asia and exporters in India are finding it increasingly difficult to secure capacity and containers to get their goods out of the country.
'There is a need for utilisation of more gateways like Baltimore to land cargo in the United States,' William P Doyle, executive director of the Maryland Port Authority, said. 'Import/export demand for containerised cargo has substantially increased over the past year, and with that, port congestion is at an all-time high.'
Mr Doyle said Baltimore has served 23 extra loaders - ad hoc vessel sailings not associated with a regular liner service - over the past year.
'Baltimore is a prime gateway for containers filled with goods heading to the e-commerce market and also for cargo sent to the Midwest via rail,' he said, adding that the port expects to see strong demand for exports on the backhaul to India as well.
Juan M Kuryla, director and CEO of PortMiami, said the new Indus 2 loop 'recognises India's growing international trade in the region,' noting that India is already Miami's third-largest trading partner in Asia.
US containerised imports from India grew 270 per cent year over year to 525,524 TEU in the first half of 2021 and 30.2 per cent compared with the same six-month period in pre-pandemic 2019, according to data from PIERS.
To accommodate the new service, MSC will drop calls at Gioia Tauro, Norfolk, Freeport, La Spezia, and King Abdullah Port from its existing Indusa loop and add a westbound call at Barcelona, leaving the service with a revised rotation of Mundra, JNPT, Colombo, Barcelona, Valencia, Sines, New York-New Jersey, Savannah, Charleston, and Mundra.
MSC will also remove a call at Charleston from the Indus Express and add a westbound call at Marsaxlokk, Malta, leaving a rotation of Port Khalifa (Abu Dhabi), Jebel Ali, Port Qasim, JNPT, Mundra, Haifa, New York-New Jersey, Savannah, Houston, Freeport (Bahamas), Marsaxlokk, King Abdullah Port, and back to Port Khalifa.
'All three services will operate as standalone MSC services, offering competitive transit times from the Middle East and Indian subcontinent region to the US East Coast and Gulf,' the carrier said. 'Our US customers benefit from the possibility to import cargo from anywhere in India, boosting predictability for effective supply chain planning.'
However, despite the additional capacity, shippers shouldn't expect any relief from rising India-US freight rates. MSC has instituted a US$2,000 per container general rate increase (GRI) on India-US routes from August 15, followed by a $2,500 per container peak season surcharge and another $800 per TEU GRI on September 1.
MSC (India) said in a statement the rate hikes are necessary to 'maintain the high level of reliability and efficiency of its services to meet the customer needs.'
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The Geneva-based container carrier will commence the weekly Indus 2 service August 30 from Mundra with eight vessels of around 8,500 TEU in capacity, according to a customer advisory. In addition to Mundra, the Indus 2 will stop at Jawaharlal Nehru Port Trust (JNPT) in India and Gioia Tauro and Sines in the Mediterranean before calling at Norfolk, Baltimore, Miami, and Freeport, Bahamas.
The service brings a new weekly call to the Port of Baltimore at a time when gateways across the US are under pressure from a seemingly unending stream of imports from Asia and exporters in India are finding it increasingly difficult to secure capacity and containers to get their goods out of the country.
'There is a need for utilisation of more gateways like Baltimore to land cargo in the United States,' William P Doyle, executive director of the Maryland Port Authority, said. 'Import/export demand for containerised cargo has substantially increased over the past year, and with that, port congestion is at an all-time high.'
Mr Doyle said Baltimore has served 23 extra loaders - ad hoc vessel sailings not associated with a regular liner service - over the past year.
'Baltimore is a prime gateway for containers filled with goods heading to the e-commerce market and also for cargo sent to the Midwest via rail,' he said, adding that the port expects to see strong demand for exports on the backhaul to India as well.
Juan M Kuryla, director and CEO of PortMiami, said the new Indus 2 loop 'recognises India's growing international trade in the region,' noting that India is already Miami's third-largest trading partner in Asia.
US containerised imports from India grew 270 per cent year over year to 525,524 TEU in the first half of 2021 and 30.2 per cent compared with the same six-month period in pre-pandemic 2019, according to data from PIERS.
To accommodate the new service, MSC will drop calls at Gioia Tauro, Norfolk, Freeport, La Spezia, and King Abdullah Port from its existing Indusa loop and add a westbound call at Barcelona, leaving the service with a revised rotation of Mundra, JNPT, Colombo, Barcelona, Valencia, Sines, New York-New Jersey, Savannah, Charleston, and Mundra.
MSC will also remove a call at Charleston from the Indus Express and add a westbound call at Marsaxlokk, Malta, leaving a rotation of Port Khalifa (Abu Dhabi), Jebel Ali, Port Qasim, JNPT, Mundra, Haifa, New York-New Jersey, Savannah, Houston, Freeport (Bahamas), Marsaxlokk, King Abdullah Port, and back to Port Khalifa.
'All three services will operate as standalone MSC services, offering competitive transit times from the Middle East and Indian subcontinent region to the US East Coast and Gulf,' the carrier said. 'Our US customers benefit from the possibility to import cargo from anywhere in India, boosting predictability for effective supply chain planning.'
However, despite the additional capacity, shippers shouldn't expect any relief from rising India-US freight rates. MSC has instituted a US$2,000 per container general rate increase (GRI) on India-US routes from August 15, followed by a $2,500 per container peak season surcharge and another $800 per TEU GRI on September 1.
MSC (India) said in a statement the rate hikes are necessary to 'maintain the high level of reliability and efficiency of its services to meet the customer needs.'
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