MSC enters air cargo business deal with Atlas

0
551
MSC enters airfreight business
MSC says it is developing MSC Air Cargo, which it will put into operation next year as a complementary service to its container shipping solutions. Photo from MSC
  • MSC will launch into airfreight business in early 2023 using four Atlas Air Inc. freighters bearing the MSC emblem in an agreement they announced separately on September 26
  • MSC is the third ocean shipping giant to enter airfreight business after CMA CGM signed a 10-year deal with KLM in May and Maersk bought Senator in June as they diversified into air cargo 
  • In the long-term pact with Atlas, MSC Air Cargo will operate under an ACMI (aircraft, crew, maintenance and insurance) arrangement with the carrier

Mediterranean Shipping Company (MSC) enters air cargo business in early 2023 using four Atlas Air Inc. freighters bearing the MSC trademark under an agreement that the two companies announced separately on September 26.

The foray into air cargo business makes MSC the third global container shipping titan after France’s CMA CGM entered into a 10-year cargo business partnership with KLM on May 18 this year and Danish shipping giant Maersk ventured into airfreight by completing its takeover of Senator International on June 2.

The global container liners went into airfreight to offer shippers an alternative amid disruptions to supply chains due to port congestion in China, North America, and Europe for more than a year now that has ironically handed ocean liners record profits as shipping rates surged.

MSC, the largest global transportation and logistics company, is developing MSC Air Cargo, which it will put into operation next year as a complementary service to its container shipping solutions, MSC announced from its headquarters in Geneva.

Separately, Atlas Air Worldwide Holdings Inc. announced in Purchase, New York State, that its subsidiary Atlas Air and MSC had entered into an agreement that would enable MSC to expand its reach and capacity for its customers.

Atlas said under the long-term ACMI (aircraft, crew, maintenance and insurance) agreement, Atlas Air will operate all four of its new and incoming Boeing 777-200 freighters globally for MSC. The planes will be bearing the MSC emblem.

Atlas Air said it will take delivery of the first aircraft in the fourth quarter this year. The four aircraft were ordered from Everett, Washington-based Boeing in January this year.

MSC said development of MSC Air Cargo began several months ago and will be available from early 2023.

The company has appointed Jannie Davel, formerly of Delta Cargo, Emirates SkyCargo and DHL, to develop MSC air cargo business and build the team that will implement it.

“We are delighted to announce the development of MSC Air Cargo and to welcome Jannie Davel to spearhead this exciting new offering for MSC clients,” MSC chief executive Soren Toft said.

“This is our first step into this market and we plan to continue exploring various avenues to develop air cargo in a way that complements our core business of container shipping.”

Atlas Air Worldwide president and chief executive John Dietrich welcomed MSC as a new customer, saying he “looks forward to supporting MSC as it develops its airfreight business and further enhances its position as a global leader in transportation and logistics.”

“This new agreement will allow MSC to capitalize on the state-of-the-art service solutions provided by our aircraft and crews, as well as the unparalleled air cargo expertise brought by our Atlas team.”