Maersk and MSC to merge loops on Mediterranean-east coast South America

MAERSK Line and MSC are teaming up on the Mediterranean-east coast South America trade by combining into a single loop Maersk's Middle East-India-Med-ECSA Rumba service with MSC's Valencia-Las Palmas-ECSA service.

The weekly capacity of the new joint loop will be 6,500 TEU, 35 per cent down from the total of 9,900 TEU available on the two existing loops.

The joint loop will be implemented in November. It will initially operate with six or seven vessels of 6,000 to 7,000 TEU. The port rotation will be Gioia Tauro (MSC hub), Valencia (MSC hub), Algeciras (Maersk hub), Pecem, Salvador, Paranagua, Itapoa, Imbituba, Santos, Las Palmas (MSC hub), Tangier (Maersk hub), Algeciras (Maersk hub) and back to Gioia Tauro.

Maersk was quoted as saying in a report by Alphaliner, "The new service allows for a more cost beneficial operation in the current trading environment and reflects current market demand in this trade," which is described as being weak.

In order to continue its ECSA-Middle East-India links, Maersk will set up a Mediterranean-Middle East-India service (ME4), to be operated with 4,500 TEU ships. The ME-4 will connect Jebel Ali, Mumbai-Nhava Sheva, Jeddah, Marsaxlokk, Algeciras, Tangier, Genoa, Jeddah and back to Jebel Ali.

The east coast South America to Middle East and India corridor will therefore be served by Maersk via transhipment in Tangier on the new joint Mediterranean-ECSA service.

CSAV, which slots on the MSC service, is expected to continue to slot from MSC on the new joint loop.