Chinese exports continue to drive trade and support intra-Asia rates
Intra-Asia rates continue to be held up by Chinese exports. While a correction in Shanghai-South-east Asia ...
Photo: VesselFinder
By Alison Koo
The Mustang, MSC’s long-planned China-US West Coast service, seems to have dropped out of sight amid tumbling transpacific freight rates.
Mustang was launched in October 2021 and pulled the following June when the pandemic-induced boom faded.
As the Red Sea crisis generated another boom in freight rates, MSC attempted to relaunch Mustang last July, but congestion around Singapore delayed the service, then scheduled to call at Yantian, Ningbo, Shanghai, and Long Beach.
Linerlytica notes today that following the end of the 2M Alliance, MSC’s new standalone east-west service deployment is fully filled, and that the Mustang service remains without vessels allocated.
MSC’s website and liner database EconDB make no mention of the Mustang’s latest attempt to resume at the start of this month.
Indeed, the 19,462 teu MSC Eloane, one of the ships originally slated for Mustang, remains deployed on the Jaguar China-US West Coast service.
MSC has not responded to The Loadstar’s enquiry about the status of the Mustang.
Listen to this clip of James Hookham, director, Global Shippers Forum and Bjorn Vang Jensen, EVP, Ocean, Easy Speed International Logistics, speaking about how shipping lines should add value for shippers if they want contract business in the midst of looming structural overcapacity:
Meanwhile, on Friday, the Shanghai Containerised Freight Index showed Shanghai-US West Coast rates dropped 10% from the previous week, to $3,544 per 40ft, while the Shanghai-US East Coast rate fell 12%, to $4,825 per 40ft.
Linerlytica said: “Momentum is weakening on the US routes as concerns mount over the impact of new tariffs that could see some of the initial transpacific capacity deployment being rolled back.”
Following the realignment of container shipping alliances on 1 February, MSC has a better market coverage and a larger market share than the Gemini Cooperation of Maersk Line and Hapag-Lloyd, despite being operating solo on the east-west trades, stated Linerlytica.
The Swiss-Italian market leader can offer the same or more weekly sailings on all the four main east-west routes, using standalone services and selective partnerships with the new Premier Alliance on the North Europe and Mediterranean routes, and with Zim on the US East Coast and Pacific North-west routes.
Why not listen to the full episode of The Loadstar Podcast if you want deeper insight into current supply chain dynamics?
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