MSC Mediterranean Shipping Co. has temporarily stopped accepting new orders for container shipments to and from the Russian port of Novorossiysk. The decision was made after the incident with the MSC ULSAN III container ship en route to the port. The suspension of bookings took effect immediately.
The carrier stated that it was monitoring the situation and recommended that customers contact the Russian representative office of the company during the restrictions to select alternative routes for both import and export. After the situation stabilizes, MSC plans to resume weekly flights. The Swiss carrier continues to operate in other Russian destinations.
For the market, this decision means more than leaving one line. MSC is the largest container operator in the world, and its service to Novorossiysk was one of the few direct channels for container cargo in the south. The loss of direct service means that cargo owners leave for transshipment through third ports with an elongation of the shoulder and an increase in cost.
The economy of the southern direction was changing before that. In August, rates for Novorossiysk were kept at 7.5–7.8 thousand dollars per forty—foot container from China for a period of 45-50 days, and a premium for military risks appeared on top - about 1,000 dollars for a twenty-foot container and 2,000 for a forty-foot container. The departure of MSC reduces the supply on the route, and this puts upward pressure on the rates of the remaining carriers.
It is already clear where the cargo will go. Some will switch to the Far East, where terminals are already operating at high capacity, and multimodal delivery times are 40-45 days. Part of it will go to St. Petersburg for a period of 55-60 days. Both alternatives are longer and will become more expensive in the coming weeks due to the influx of goods.
What should cargo owners do in the southern direction? Request confirmation from freight forwarders of the status of shipments already booked — the suspension applies to new orders, but the schedule of existing ones may shift. Immediately get quotes for the Far East and the Baltic for September and October, without waiting for the entire reoriented flow to arrive there. And recalculate the terms in contracts with buyers: the difference between the southern and eastern routes easily reaches three weeks.
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