- MSC Embraces Independence with Direct Port Services.
- Soren Toft Highlights MSC’s Standalone Strategy Post 2M Alliance.
- Red Sea Crisis Response: MSC’s Flexible Route Strategy.
At the International Association of Ports and Harbour World Port Conference in Hamburg, MSC CEO Soren Toft outlined company activities after the conclusion of the 2M Alliance with Maersk. The new changes in operational activities the company would pursue were independence and flexibility in operations, reports Container News.
Independence and Agility
“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.”
This marks a significant move away from shared alliances. By operating independently, MSC aims to offer clients faster and more agile decision-making capabilities, directly enhancing their service experience.
Building capacity to support growth
Aggressive acquisition of new buildings to drive this strategy is being pursued by MSC. For now, MSC boasts of a container capacity of over 6.1 million TEUs, which penetrates 20% of the global market share. With the best order book in the industry, it is all set to further consolidate its position.
This is a very aggressive investment on the part of MSC that would help make quick strides towards achieving high expectations created around it to enable
Direct Services and Flexibility
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.”
This direct connection strategy will allow the company to offer 1,900 direct port combinations, which is set to improve the flexibility and speed of its services.
Contrast with Gemini’s Hub-Centric Network
Although not exactly referring to Gemini Cooperation, MSC takes an approach altogether different from the new joint venture just struck by Hapag-Lloyd and Maersk. The hub-and-spoke network of Gemini Cooperation is decidedly more traditional, depending heavily on transhipment points.
“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.
Navigating the Red Sea Crisis
Meanwhile, the Gemini Cooperation set in motion the Cape of Good Hope service network in February as a response to the crisis situation that was still persistent in the Red Sea. On 6 September the alliance introduced two alternative routes: the Trans-Suez Network and the Cape of Good Hope Network. They opted, however on the Cape of Good Hope route in fear of unsafe passage through the Suez Canal.
MSC will also provide options for both the 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.
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Source: Container News
