News / MSC revives Asia-USEC Liberty service, despite threat of port strikes

Photo: VesselFinder

MSC is reintroducing its Asia-US East Coast Liberty service today, as rates on the tradelane continue to hold steady amid the market correction.

The Liberty service calls Shanghai, Busan, Miami, Savannah, Charleston, Philadelphia, New York, Singapore, and Shanghai, deploying up to 12 ships of 4,000 to 5,000 teu and turning in 12 weeks.

The first sailing is today, with the 4,432 teu MSC Houston V, which is being diverted from MSC’s US-South Africa service.

The Liberty is the first Asia-USEC service to be launched this year. It was launched by MSC amid the Covid-fuelled boom in May 2021, but suspended in November 2022, due to slowing demand.

While Asia-US West Coast rates have come under downward pressure due to capacity additions, Asia-US East Coast rates have been more consistent, closing at $9,346 per feu, according to the Shanghai Containerised Freight Index on 2 August – although this was a contraction from the peak of $9,945 in early July.

Linerlytica analyst Tan Hua Joo told The Loadstar the Liberty service would add only 48,000-60,000 teu to the 2.74m teu capacity on the Asia-USEC trade, and so is not expected to add substantial downward pressure on rates.

Xeneta’s chief analyst, Peter Sand, said MSC was always opportunistic, although the Liberty’s timing appears challenging due to the risks of industrial action  by the International Longshoremen’s Association (ILA) in east and Gulf coast ports.

Mr Sand said: “If it’s a weekly service and the US east coast gets hit by strikes, the third ship on this new service will arrive on 1 October [when a strike is scheduled to begin].

“We also see capacity on the rise from Asia to the east coast. In Q2 24, the filling factor of this trade was close to an all-time high, and spot rates are still mega-high.”

The ILA expects to present its final demands to port employers on 4 September.