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. 22 October 2022.

You may also like

The Fully Autonomous Ship Project is entering its second phase: “Testing”

The Fully Autonomous Ship Project is entering its second phase: “Testing”. We are now entering the second phase of MEGURI2040, a project led by the Nippon Foundation, aimed at creating a fully autonomous ship with a clear objective: the implementation of all autonomous navigation technologies developed during phase 1 by 2025. The program will focus on achieving this main goal [...]

Explorer more

Container shipping market back in 2019

Container shipping market back in 2019. Alan Murphy, CEO and founder of Copenhagen supply chain analyst Sea Intelligence, has warned of widespread service cancellations on major trade lanes across the Pacific Ocean and between Asia and Europe between now and the end of the year. _____________________________________ Murphy was speaking week at the Saudi Maritime Congress held in Damman this week. [...]

Explorer more

DP World eyes logistics and supply chain expansion in SE Asia

DP World eyes logistics and supply chain expansion in SE Asia. DP World is looking to expand its logistics and supply chain capabilities in the Southeast Asian region building on its existing terminal business.   “As we seek to grow our legacy ports & terminals business, we are also working to significantly enhance our capabilities within the fuller spectrum of [...]

Explorer more

Scroll To Top