Switzerland-based shipping line MSC announced on April 26 that it will launch a new service in May connecting Vietnam to the US East Coast amid growing export volumes from Southeast Asia to the US, reports Platts.
About The Service
The Liberty service will sail from Vung Tau, Vietnam, for the first time on May 22 to Yantian, China, then proceed in an eastbound direction across the Pacific, transiting the Panama Canal before calling on Charleston, Savannah and New York. The around-the-world service will then sail eastbound and transit the Suez Canal before calling on Singapore and returning to Vung Tau.
“By reshuffling our network, we aim to ensure faster rotations and enable our customers to better plan their supply chains,” MSC said in an advisory to customers.
Emerald Service
The company is also dropping its call on Charleston from its Emerald service and dropping calls on Charleston and King Abdullah, Saudi Arabia, from its America service, which also connect Vietnam to the US East Coast.
Many exporters have shifted production facilities from China to Southeast Asian countries after some shipments from China to the US were hit with tariffs in 2018 stemming from a wider trade dispute between the world’s two largest economies. Labor costs have also risen in China compared to many Southeast Asian countries.
Import Volumes
The Port of Savannah reported its import volumes from Southeast Asia grew by 92% in 2020 compared to 2015 to a total of 345,406 TEUs, comprising 15% of all imports. Import volumes from Northeast Asia countries including China increased by 29% over the same period to 1.28 million TEU in 2020, comprising 56% of total imports.
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Source: S&P Global
