MSC resumes Asian-US East Coast free route service USEC Liberty
MSC today announced the relaunch of its Asia-US East Coast Free route service as rates on the route continue to remain stable during the market correction.
With stops in Shanghai, Busan, Miami, Savannah, Charleston, Philadelphia, New York, Singapore and Shanghai, Liberty can deploy up to 12 vessels with a capacity of 4,000 to 5,000 TEUs and a turnaround time of 12 weeks.
The maiden voyage took place on the 8th with the 4,432 teu MSC Houston V, which was diverted from MSC's US-South Africa route.
The Liberty is the first Asia-US East Coast route of the year. The route was launched by Mediterranean Shipping in May 2021 during the pandemic, but was discontinued in November 2022 due to slowing demand.
While Asia-U.S. West Coast freight rates have come under downward pressure due to increased capacity, Asia-U.S. East Coast freight rates have been more stable, closing at $9,346 per foot of container - though that's down from a peak of $9,945 in early July, according to the Shanghai Container Rate Index on Aug. 2.
According to Linerlytica analyst Tan Hua Joo, the Liberty service will only add 48,000-60,000 TEUS to the 2.74 million TEUs capacity on the Asia-US East route, so it is not expected to exert significant downward pressure on freight rates.
Peter Sand, principal analyst at Xeneta, said MSC had been seizing opportunities, but the timing of Liberty's order appeared challenging due to the risk of strike action by the International Longshoremen's Association (ILA) at East Coast and Gulf Coast ports.
Sander said: "If this is a weekly service route and the US East Coast is hit by a strike, then the third ship on this new route will arrive on October 1 (when the strike is expected to start)."
"We are also seeing a rise in capacity from Asia to the east Coast. In the second quarter of 2024, loadings in the trade were near record levels and spot prices remained at ultra-high levels."
The ILO is expected to make its final request to port employers on September 4.
With stops in Shanghai, Busan, Miami, Savannah, Charleston, Philadelphia, New York, Singapore and Shanghai, Liberty can deploy up to 12 vessels with a capacity of 4,000 to 5,000 TEUs and a turnaround time of 12 weeks.
The maiden voyage took place on the 8th with the 4,432 teu MSC Houston V, which was diverted from MSC's US-South Africa route.
The Liberty is the first Asia-US East Coast route of the year. The route was launched by Mediterranean Shipping in May 2021 during the pandemic, but was discontinued in November 2022 due to slowing demand.
While Asia-U.S. West Coast freight rates have come under downward pressure due to increased capacity, Asia-U.S. East Coast freight rates have been more stable, closing at $9,346 per foot of container - though that's down from a peak of $9,945 in early July, according to the Shanghai Container Rate Index on Aug. 2.
According to Linerlytica analyst Tan Hua Joo, the Liberty service will only add 48,000-60,000 TEUS to the 2.74 million TEUs capacity on the Asia-US East route, so it is not expected to exert significant downward pressure on freight rates.
Peter Sand, principal analyst at Xeneta, said MSC had been seizing opportunities, but the timing of Liberty's order appeared challenging due to the risk of strike action by the International Longshoremen's Association (ILA) at East Coast and Gulf Coast ports.
Sander said: "If this is a weekly service route and the US East Coast is hit by a strike, then the third ship on this new route will arrive on October 1 (when the strike is expected to start)."
"We are also seeing a rise in capacity from Asia to the east Coast. In the second quarter of 2024, loadings in the trade were near record levels and spot prices remained at ultra-high levels."
The ILO is expected to make its final request to port employers on September 4.
