MSC SET TO MORE THAN DOUBLE ITS SHARE OF SLOT-SHARING AGREEMENTS
Global liners last week announced en masse their schedules on the main east-west trades come February next year when old agreements expire, and new groupings emerge. Among the key takeaways was how Mediterranean Shipping Co (MSC), the world’s largest container line, will not, as originally envisaged, be going it entirely alone. Over the past years as MSC readied for the end of its 2M partnership with Maersk, the Soren Toft-led line has embarked on the largest fleet expansion in the history of container shipping, surpassing 5m teu last year, 6m teu in July, and firmly on track to hit 7m slots by early 2026. This growth came with a strategy to pursue a global liner network without the need for partners. However, in the flurry of announcements made last week as the world’s top lines revealed their networks for 2025, it has emerged that MSC has reached out to a number of its peers on the main tradelanes.
TWO WEEKS TO STAVE OFF SUPPLY CHAIN CHAOS ON THE US EAST COAST
With just two weeks left to strike a deal the prospect of 45,000 American dockworkers downing tools come the start of next month now looks highly likely. Contract negotiations have broken down between the International Longshoremen’s Association (ILA) and port operators on the US east and Gulf coasts. The current agreement, which covers workers at facilities including six of the 10 busiest US ports, expires September 30. Harold Daggett, the ILA’s president, warned earlier this month in a video uploaded to the union’s website: “The ILA most definitely will hit the streets on October 1st”. The union has been seeking wage increases in excess of 70%, plus commitments from terminal operators to avoid automating operations at their facilities. Daggett’s son, Dennis, who serves as the union’s vice president, stressed in a podcast yesterday: “In regard to automation or semi-automation, we’re completely against any type of robotic taking over an actual human being’s job.” The United States Maritime Alliance (USMX), which represents the port employers, stated last week there was still little sign of the two sides reaching agreement.
ATLANTICA REENTERS CONTAINER SHIPPING
Oslo-based Atlantica Shipping has reentered the container shipping sector. Alphaliner is reporting the company has bought the 4,600 teu Northern Power and renamed it Atlantica Power. The 2010-built ship, now displayed prominently on Atlantica’s homepage, is on charter to CMA CGM through to the summer of 2026. No financial details of the acquisition have been revealed. In addition to the Atlantica Power, Atlantica Shipping owns nine offshore vessels and two supramax bulkers.
CRANE COLLAPSE AT YANTIAN
A vintage feeder boxship belonging to Mediterranean Shipping Co (MSC) was involved in an accident yesterday that resulted in part of a giant ship-to-shore crane belonging to Yantian Port in southern China come crashing down on the vessel. The 1998-built, 1,730 teu MSC Riona was on an intra-Asia service, calling at Shenzhen’s Yantian port when the accident occurred at around 8.40 am yesterday morning leading to operations across berth two of the busy port to be suspended. No injuries were reported when part of a crane collapsed onto the vessel. Local reports show some containers from the ship fell into the sea. Information on how the accident occurred remains very limited at present.
DOT APPROVES $1.9B ALASKA AIR, HAWAIIAN MERGER
Alaska Airlines expects to finalize its $1.9 billion merger with Hawaiian Airlines as soon as Wednesday after the Department of Transportation cleared the transaction, the company announced Tuesday. The two airlines committed to a number of consumer protections to secure DOT approval, which was the last remaining hurdle for the merger. The Department of Justice last month quietly approved the transaction. The combination of Alaska Airlines (NYSE: ALK) and Hawaiian Airlines (NASDAQ: HA) is important from a freight perspective because Alaska will take over cargo transportation for e-commerce giant Amazon. Hawaiian Airlines is operating a handful of Airbus A330 converted freighters for Amazon’s air logistics network and expects to have 10 cargo jets by next year. Alaska committed last December, when agreeing to buy Hawaiian Airlines, to keep serving Hawaii.