'Unending' MSC ship-shopping spree the driver for charter rate rebound
MSC’s unrelenting pursuit of second-hand containerships is reportedly reducing the pool of vessels left available ...
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MSC appears to have decided against leaving Montreal-destined shipments at the port of Halifax, and is said to be set to provide a feeder service to ferry them on to the Quebec port, which had been hit by one of a spate of strikes across Canada.
One forwarder told The Loadstar: “MSC was the only carrier that rerouted to Halifax as a result of the strikes at Montreal, sending two vessels and discharging everything there.”
MSC had advised customers they would have to collect their shipments from Halifax, more than 1,100 nautical miles from their original destination, and could face extra charges resulting from the diversion.
But now, forwarders say, customer pressure appears to have succeeded in persuading the carrier to rethink.
The forwarder said: “On the day the government forced striking dockers back to work [12 November], MSC told customers it was terminating cargo in Halifax and it was everyone’s responsibility to collect.
“Everyone lost their minds, with mass complaints, and then MSC u-turned.”
Sources suggested the carrier may have been advised that the clause it was relying on to justify leaving the cargo at Halifax may not apply, leaving it exposed to potential legal issues. Others have suggested booking agent threats of retaliatory cancellations and vessels going empty.
MSC has yet to respond to questions from The Loadstar.
One forwarder told The Loadstar MSC was planning to use one of its feeder vessels, MSC Sagitta, currently at anchor off Halifax, to move the stranded cargo up to Montreal.
But when this will happen depends, added the forwarder, noting that while the vessel is ready, cabotage rules mean the government will have to approve the service before it can set sail.
However, not all customers have been informed of this – at least one received an advisory yesterday lacking any details of the cargo being moved again by the carrier.
Citing clause 19.2 of MSC’s bills of lading terms, the advisory added the “change to the transport plan [diversion to Halifax]” would “generate additional costs, which are recoverable”.
It added that “an additional inland cost of $550 will be assessed per container for cargo with a final destination of Toronto” (applying to a small number of boxes also left at Halifax) and “all the other inland destinations will be assessed as per the relevant inland tariff rate”.
Another forwarder told The Loadstar that colleagues, “who should know”, had also not been made aware of any feeder service.
Noting the customer advisory, the forwarder said: “I expect all of the shipping companies will have an additional fee like this if they re-route. This wouldn’t be a surprise to anyone, I don’t think.”
The sources The Loadstar spoke to agreed MSC’s reported move to offer the feeder service “sounds strange”, with one adding “something spooked them”.
As to when customers can expect their cargo, those in Toronto look better placed, as there are rail options from Halifax, but for those in Montreal, the expectation is 12 days, minimum, as connections are fewer.
“We’ve been told 12 days, but the rule of thumb is always to add another seven, so our hope is to get it by mid-December,” one forwarder said.
Listen to this clip from The Loadstar Podcast of host Mike King speaking with Brian Bourke, global chief commercial officer at Seko Logistics, about how shippers are front loading for 2025:
Comment on this article
Peter Bothmer
November 22, 2024 at 3:59 pmthis is utterly BS from MSC that they have the Gall to to
charges 550.00 for this diversion they did on their own
choice without even asking anyone of this decision. we will refuse to pay 1 cent more to this outrageous fee.