MSC chief Toft warns of ‘some difficult quarters ahead’.

Mediterranean Shipping Co. (MSC) boss Soren Toft has warned of some difficult times ahead for the container shipping sector.

 

Taking to social media to share his thoughts on how the market and MSC were developing at the end of the third quarter Toft, CEO of MSC, commented that the market was “normalising”.

Following unprecedentedly high container shipping spot freight rates last driven by supply chain disruption rates on some trades have fallen by as much as two-thirds in recent months and this now bleeding into contract rates as shippers pushed for renegotiations.

Toft also noted external macro-economic pressures which will put pressure on cargo shopping. “But we are also seeing rising inflation, rising interest rates and rising energy prices, so there will no doubt be some difficult quarters ahead,” he warned.

MSC has been acting to cut capacity with blank sailings and at the end of last month announced it would be suspending its Sequoia service as part of the 2M alliance linking China and Korea with US West Coast ports. The company noted “significantly reduced demand for shipments into the US West Coast during the past weeks”.

Although warning of difficult quarters ahead Toft also flagged MSC’s continued expansion with the “big news” of Q3 being the move to develop MSC Air Cargo. “It adds a new dimension to the company,” he said.

Looking ahead the expansion of services that connect to ocean shipping by MSC are set to continue. “However, there are lots of reasons to stay positive, and we are developing other solutions, not only air cargo, but also on the land side to expand our service offering further,” Toft said.

 

by Marcus Hand. Seatrade. October 12, 2022.
Source: Seatrade, Martime News. https://www.seatrade-maritime.com/containers/msc-chief-toft-warns-some-difficult-quarters-ahead. 22 October 2022.

You may also like

Port Klang, PTP among the top 20 busiest ports in the world, says Loke

Port Klang, PTP among the top 20 busiest ports in the world, says Loke PUTRAJAYA: Port Klang in Selangor and Johor's Port of Tanjung Pelepas (PTP) remain among the top 20 main and busiest ports globally, says Transport Minister Anthony Loke. Loke said Port Klang recorded the highest number of containers processed last year, with 14.06 million twenty-foot equivalent units [...]

Explorer more

Malaysia eyes bigger role in global aviation supply chain – MITI

Malaysia eyes bigger role in global aviation supply chain - MITI KUALA LUMPUR: Malaysia, with a credible and meaningful presence in aviation material and aircraft parts and components manufacturing, hopes to play a more important part in the global supply chain. Deputy Investment, Trade and Industry Minister Liew Chin Tong said the aerospace sector plays an important role in advancing [...]

Explorer more

New container technology can keep perishable food fresh for longer

New container technology can keep perishable food fresh for longer Major Japanese trading house Sumitomo Corporation is set to introduce new container technology that keeps perishable food fresh for a longer time. The innovation is timely as many shipping firms are taking lengthy diversions to avoid the Red Sea due to attacks on vessels. The technology creates an electric field [...]

Explorer more

Scroll To Top