The move by MSC should enable significant cost savings to be made, as much larger ships of 8,800 TEU capacity will be deployed. This is made possible as a result of the new locks on the Panama Canal opening on 26 June. Currently, vessels only half that size are used on the two strings.

MSC stressed that the move would reduce its carbon emissions, and maintain its competitive position in both trade lanes when it comes to transit times. The latter factor is very significant, particularly northbound, as a large proportion of cargo moved comprises perishable products (fish and fruit).

It is a principal reason why the US east coast port of Philadelphia is maintained as a direct port of call northbound, and all other ports (including Port Everglades, Charleston and New York) will be served by feeder vessel over MSC’s hub at Freeport, Bahamas. Philadelphia is a main import port for reefer cargoes in the US, as it has all phytosanitary and inspection facilities needed for products, such as Chilean grapes. Other ports are trying to move in on this market, but multiple port calls are an issue with fresh fruit logistics.

MSC will also use its established hub in Balboa, Panama (primarily for Central America), as well as using Callao as a sub-regional hub, deploying feeder vessels from Peru’s largest box port to/from Arica, Puerto Angamos and San Antonio.

The full rotation of the new service will be Coronel, Valparaiso, Callao, Balboa, Freeport, Philadelphia, Rotterdam, Antwerp, Tilbury, Hamburg, Bremerhaven, Antwerp, Sines, Freeport, Cartagena, Cristobal, Balboa, Buenaventura, Callao, and returning to Coronel. The new service will commence with the sailing of MSC BRUNELLA out of Rotterdam on 14 June.

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This complete item is approximately 300 words in length, and appeared in the May 2016 issue of WorldCargo News, on page 23. To access this issue download the PDF here.