MSC adjusts fleet strategy amid market shifts
GLOBAL – The Mediterranean Shipping Company (MSC) is making significant changes to its fleet strategy, shifting its largest vessels away from the Asia–North Europe route.
According to Alphaliner, MSC’s megamax ships, ranging from 19,200 to 24,300 TEUs, will now serve the Asia-Mediterranean and Asia–West Africa trades. Ships with an average size of 14,700 TEUs will now operate on the Asia–North Europe corridor.
This adjustment comes after MSC’s departure from the 2M Alliance with Maersk, marking the company’s first month of independent operations on major east-west routes.
Analysts suggest the shift in vessel deployment may help regulate capacity and stabilize freight rates, which have seen considerable declines in recent weeks.
Data from the Shanghai Containerized Freight Index (SCFI) shows that spot rates for Shanghai–North Europe have fallen to US$1,578 per TEU, a steep 44% drop in just seven weeks. Meanwhile, rates for Shanghai–West Africa remain strong, averaging around $4,000 per TEU.
This contrast suggests that MSC is repositioning its vessels to capitalize on more profitable routes.
Market analysts emphasize that the decline in rates for the Asia–North Europe trade has been more severe than expected.
While the Asia-Mediterranean trade remains steady, lower demand on the North Europe leg has created downward pressure on pricing. By adjusting vessel deployment, MSC aims to manage supply and improve operational efficiency.
Broader concerns about excess capacity and softer-than-anticipated cargo demand at major European ports have influenced MSC’s decision.
Analysts believe using smaller vessels on the Asia–North Europe rotation will enhance schedule flexibility. Meanwhile, shifting larger ships to routes with stronger pricing could improve overall revenue.
Industry faces further uncertainty in 2025
An article from ING Think, the economic and financial analysis platform of ING, highlights ongoing challenges for container shipping in 2025.
The global shipping sector has experienced extreme fluctuations in recent years due to the pandemic, supply chain disruptions, and geopolitical tensions. The situation remains uncertain, with the potential reopening of the Red Sea route being a key factor in market stability.
“The potential resumption of the Suez route will be the most important factor for 2025,” the article states. “The year began with 85-90% of container volume still avoiding the Red Sea.”
“However, if Houthi attacks remain absent for longer and stability returns to the Middle East, container liners might choose to resume transits. Nevertheless, recalibrating sailing routes, port operations, and capacity will take us well into the year.”
In addition to route changes, new import tariffs and trade policies, particularly from the United States, are affecting global trade flows. “Import tariffs and potential US actions to curb Chinese hegemony in shipbuilding are pushing up costs and leading to shifts in demand and sailing schemes,” the article adds.
Freight rates are also normalizing after extreme fluctuations caused by the pandemic. Spot rates have dropped, but contract freight rates remain high, providing stability for shipping companies.
However, the industry faces concerns over excess capacity, with a surge in new vessel deliveries expected to impact market conditions.
Some companies are already adopting strategies such as slower sailing speeds and increasing the scrapping of older ships to counteract overcapacity.
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