MSC reshuffles fleet to absorb US port fees

Photo: Ship Spotting

Mediterranean Shipping Co (MSC) has restructured its global vessel network to comply with upcoming US port fees targeting Chinese-built or operated ships, aiming to shield customers from the added costs, reports New York's Journal of Commerce.MSC chief executive Soren Toft said the internal changes ensure compliance with US trade regulations while preserving service reliability. The new fees, effective Oct. 14, will be based on either gross tonnage or container volume, adding US$300 to US$600 per container. 

MSC's move follows similar announcements from CMA CGM and Cosco Shipping. CMA CGM removed Chinese-built ships from its US routes and will not pass on the fees to customers. Cosco, unable to avoid the charges due to ownership, also plans no surcharge.Data from Sea-web shows 35 of MSC's 266 ships calling the US in the past six months were built in China. Some of these vessels have now shifted to non-US routes, including the MSC Jeongmin and MSC Ivory Coast, which are redeployed to European and Mediterranean services.

MSC's fleet is largely composed of South Korean-built ships, accounting for about half of its active vessels. Chinese-built ships make up roughly a quarter, but the balance may shift as 106 new vessels are under construction at Chinese yards, totalling 1.9 million TEUs.

No new orders from South Korean shipbuilders are currently listed for MSC, according to Sea-web. The carrier's fleet flexibility allows it to adjust deployments to minimise exposure to regulatory costs.

Source: Maasmond Maritime