EXCLUSIVE: MSC vs CMA CGM – twists and turns at Clasquin & Ceva
Rivalry? What rivalry?
By Alison Koo
The closure of the Strait of Hormuz and the Gulf states’ need to import almost all consumer goods are feeding demand for ad hoc Red Sea sailings and India-UAE services.
Gulftainer’s shipping arm GT Lines has launched a revised India-Sharjah Express (ISX) service that will provide alternative connections to UAE via the Gulftainer-operated port of Khor Fakkan following the closure of the Strait of Hormuz.
The revised service will operate two separate routes, with the ISX 1 calling at Nhava Sheva, Khor Fakkan, Nhava Sheva, while the ISX 2 will call at Mundra, Nhava Sheva, Khor Fakkan, and Mundra. The service will operate three 1,000 teu ships on the two routes, starting with the 1,063 teu VIMC Diamond that will depart Nhava Sheva today (24 March).
The two services will connect at Khor Fakkan by UAE landbridge to two other UAE terminals at Hamriyah and Sharjah.
Last week, CMA CGM started a Red Sea Mediterranean Express service linking Egypt and Saudi Arabia, using three 2,500 teu ships.
Congestion in the Sharjah port of Khor Fakkan is said to be growing, and shipping lines are restructuring Red Sea and Persian Gulf services into alternative combinations.
Linerlytica said in its report today that container traffic is adjusting to the extended shutdown in Hormuz traffic, with carriers establishing intra-Gulf feeders and India-Northern UAE/Oman services to maintain cargo flow to the Gulf region.
The consultancy said: “These come on top of ad hoc Red Sea sailings from China and India that are capitalising on the demand for alternative gateways to bring cargo into the Middle East Gulf states.”
The situation is supporting Asia-Mediterranean rates, with demand for alternative hubs connecting to the Persian Gulf via the Mediterranean still holding, although the impact has been mitigated by direct Red Sea services with additional loaders still being added although most of the ships added are smaller ships of below 3,000 teu.
On Friday, the Shanghai Containerised Freight Index showed the Shanghai-Mediterranean freight rates up 4% from the previous week, to $2,784 per teu.
Comment on this article