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South Africa’s freight forwarders have welcomed a decision by MSC to continue its direct weekly service to the US.
The world’s largest shipping line announced yesterday it would relaunch its US-South Africa service in October, after its current cooperation agreement with Maersk expires.
The two carriers currently jointly operate the weekly service, marketed as AMEX by Maersk, deploying four ships from each carrier, with an average capacity of 3,000 teu, according to the eeSea liner database.
Announcing the “enhanced standalone service”, the Geneva-headquartered carrier told customers it would inject four of its own ships into the service to maintain the weekly frequency.
“This move will ensure service continuity and strengthens MSC’s commitment as the sole carrier offering a direct link between South Africa and the US east coast,” it added.
The port rotation will remain unchanged – Gqeberha (Port Elizabeth)-Durban-Cape Town-New York-Baltimore-Norfolk-Charleston-Freeport-Gqeberha – the carrier said, although it plans to add Philadelphia during the citrus season.
The announcement was “very encouraging”, said the Southern African Association of Freight Forwarders, adding it would provide “a critical anchor for direct maritime trade amid declining liner connectivity and rising global uncertainty”.
SAAF said: “This development brings much-needed clarity for local shippers and cargo owners, and signals renewed confidence in South Africa’s strategic relevance as a trading partner.”
However, many forwarders were wondering what Maersk’s response was likely to be. A local source told The Loadstar: “Maersk has not issued a public statement regarding its plans for a direct South Africa–US service, but available information suggests it intends to incorporate its AMEX rotations into the new Gemini Cooperation with Hapag-Lloyd. However, not directly, but via transhipments.”
Hapag-Lloyd and Maersk, with Japanese carrier ONE, jointly operate the Europe-South Africa SAECS service, which includes a call at the Spanish transhipment hub of Algeciras, where boxes could be transhipped onto Gemini’s TA12 Mediterranean-North America service, which calls at five US east coast ports.
Possibly underscoring its commitment to the market, Maersk yesterday gave South African fruit exporters an early tour of its under-construction cold storage facilities at Belcon Logistics Park, outside Cape Town, one of three such facilities it is developing in the country.
Although the facility is due to be formally inaugurated in Q4 this year, “it will start welcoming cargo for some of its customers as early as June”, the carrier said.
Meanwhile, South Africa-US container demand has shown a strong start to the year, according to Container Trade Statistics data, with first-quarter volumes of 48,300 teu representing year-on-year growth of 22%. Full-year 2024 volumes on the trade were 168,900 teu, according to CTS.
“The US remains a critical trading partner, absorbing 8% of South Africa’s exports and supplying 9% of its imports in 2024, with the trade balance strongly in South Africa’s favour, according to a recent presentation by XA Global Trade Advisors,” a SAAFF commentary said yesterday, while the chart below (click to expand) shows South Africa’s port volume growth over the first five months this year.
Source: SAAFF, calculated from Transnet data
A key challenge to this continued growth will be the ability of South Africa’s ports to handle higher volumes – Durban, Cape Town, and Port Elizabeth continue to struggle with “adverse weather, vacant berths, as well as continuous equipment breakdowns and shortages”, noted SAAFF.
However, the South African government’s recent budget allocated R400bn ($22.4bn) to be invested into the country’s logistics infrastructure this year, as well as a further R51bn debt guarantee to the state-owned rail and port operator, to “stabilise Transnet’s capital programme and enable reform implementation”, such as the increased introduction of private terminal operators into its ports.
However, one further deadline carriers and their customers have their eye on is 10 June, when dockers’ union UNTU is due to respond to Transnet’s latest wage offer.
While the SAWATU union has already accepted, UNTU representatives are said to be looking for a higher offer and, “should the latest proposal not satisfy their demands, they will most likely proceed with industrial action”, said SAAF.
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