MSC is adjusting its route network: suspending services from India to the US East Coast and increasing capacity on routes from China to the US West Coast
MSC, the world’s largest container shipping company, has recently implemented a new round of adjustments to its route network.
Whilst scaling back services on the India–US East Coast route, it has resumed express services between China and the US West Coast.
It is understood that MSC has suspended the Indus Express service between the west coast of India and the US East Coast. Following this suspension, the company retains only one operational route between India and the US East Coast.
Given market conditions, this adjustment comes as no surprise.
Recently, Indian export demand has been relatively stable but somewhat subdued, with spot rates for 40-foot containers on the India-US East Coast route remaining within the $2,000 to $2,500 range for an extended period, showing no significant seasonal increase. At the same time, uncertainty surrounding the situation in the Middle East has, to some extent, dampened the shipping schedules of certain shippers.
As China’s exports enter their traditional peak season, cargo volumes and booking demand are showing signs of a concentrated surge.
MSC has resumed its premium trans-Pacific service, the Pearl Service, with the maiden voyage scheduled to depart from Yantian, Shenzhen, on 13 June, calling at Xiamen before proceeding directly to the Port of Long Beach in the US, thereby providing additional capacity support for export cargo from South China and surrounding regions.
It is widely believed within the industry that this adjustment is primarily a reallocation of capacity in response to regional demand variations.
Compared to the Indian market, China’s export volumes and demand for bookings are more concentrated, making trans-Pacific routes more attractive in terms of capacity.
For foreign trade and freight forwarding companies facing an accelerated shipment schedule recently, the return of this new service will help alleviate the current shortage of available space to some extent.
However, as the peak season progresses, capacity availability may still experience periodic fluctuations, so booking space in advance remains the safer option.
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