Maersk, MSC to slash capacity on Asia-Med loop

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Maersk_VirginiaDenmark’s Maersk Line and Swiss carrier Mediterranean Shipping Co. (MSC), which make up the 2M alliance, announced they are reducing capacity on the Asia-Europe trade sometime in the third quarter of the year.

In separate statements, the two box shipping giants said the capacity cut will come by way of smaller vessels being deployed on the Asia-Mediterranean trade. This comes amid reports of declining traffic and falling freight rates on the Asia-Europe trade.

“Our network review has allowed Maersk Line to improve the allocation of capacity on the Asia to Europe services. Going forward, the average vessel size on the AE9 service [Condor Service for MSC], operating between the Asia-Mediterranean trade, will be reduced from 9,500 TEU to 6,500 TEU—with the reduction in capacity mainly impacting Mediterranean,” Maersk Line said.

“This development will meet both current and anticipated demands,” the two companies added.

Maersk Line said the adjustments to the network will “provide us with a more seasonal network, which will allow us to adjust capacity to demand without impacting the product and reliability we offer to customers.”

The changes to the network will apply equally to the two vessel sharing agreement partners on the East-West network, and are anticipated to take effect by the middle of the third quarter of this year.

Maersk Line and MSC said they are currently “putting the finishing touches on the revised rotations and full service details.”

Additionally, MSC said it plans to “optimize all of its Asia-Europe services,” with the changes to be implemented progressively over the coming months. The changes will include port combinations, vessel rotations, and capacity deployment.

The two liners said these changes will be communicated to the public as soon as they pass regulatory requirements.

Photo: Bahnfrend