MSC’s direct connection strategy in contrast to Gemini hub heavy network

Speaking at the International Association of Ports and Harbour (IAPH) World Port Conference in Hamburg, Germany, MSC’s CEO Soren Toft put forward what will be his company’s operational difference after the dissolution of the 2m alliance.

“We want to be stand-alone,” pointed out Soren Toft. “We will be in charge of our own destiny, so that we can provide the speed, agility and decision-making to our clients that we want.”

The company’s aggressive newbuilding acquisition strategy is well-positioned to support its ambitious goals. Currently, MSC boasts over 6.1 million TEUs in total container capacity, commanding 20% of the global market share. Additionally, it holds the largest orderbook among its competitors, further solidifying its leadership in the industry.

MSC boss said the new network will “offer clients a lot of direct port pairs” and “a lot of choices”. Toft added, “We believe that this will offer ourselves and our clients the best flexibility that we possibly can.”

Specifically, the Swiss/Italian ocean carrier aims to provide more direct services with a claimed 1,900 direct port combinations.

“Whilst not explicitly naming it, this approach will be in stark contrast to the Gemini Cooperation’s hub/spoke/transshipment heavy network,” noted DynaLiners in its weekly report.

Meanwhile, Gemini Cooperation, formed by Hapag-Lloyd and Maersk, confirmed that it will start operations with the Cape of Good Hope service network in February. In early September, the new alliance presented two alternative options: Trans-Suez Network and Cape of Good Hope Network. With the Red Sea crisis still ongoing, the two partners have decided to proceed with the Cape of Good Hope network in the first weeks of their cooperation.

MSC will also provide options for both Suez Canal and Cape of Good Hope routes, depending on the evolving situation in the Red Sea. Toft, however, believes “there will not be any short-term solution on the horizon” to guarantee safe passage through the Suez Canal.

Source: Container News

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