MSC Adjusts Multiple US West Coast Routes Amid Trade Uncertainty
Publish Time: 2025-07-14 Origin: Site
Key Adjustments
Suspended PERAL Service
MSC has indefinitely paused its PERAL route (connecting Vietnam’s Cai Mep, Haiphong, and US Long Beach) due to weak transpacific demand and low freight rates.
ORIENT Route Expansion
New port rotation: Haiphong – Ningbo – Shanghai – Busan – Long Beach – Oakland.
Objective: Strengthen coverage in Vietnam and improve US West Coast connectivity.
SENTOSA Route Enhancement
Added Xiamen call: New rotation – Port Klang – Singapore – Laem Chabang – Vung Tau – Yantian – Xiamen – Long Beach – Oakland.
Purpose: Ensure stable cargo flow from China’s Fujian province to the US.
Market Context & Impact
Freight Rates at Lows: US West Coast spot rates have dropped below $2,000/FEU, prompting MSC and others (e.g., SeaLead, TS Lines) to cut capacity.
Tariff Uncertainty:
Trump’s new tariffs (effective August 1, 2025) have yet to spur preemptive shipments, as importers await final customs rules.
Existing high US-China tariffs (until August 14) further suppress demand.
Congestion Woes:
Nordic ports (e.g., Rotterdam, Antwerp) face 7-day delays, diverting carrier schedules and raising costs.
Outlook
Short-term: More carriers may suspend routes if tariffs dampen Q3 volumes.
Long-term: MSC’s Haiphong/Xiamen additions signal a shift to secondary hubs amid trade volatility.