Uncertainty among local exporters over South Africa’s direct sailing service to the East Coast of the United States has no foundation, despite various media reports purporting to stoke doubt about the 16- to 20-day American Express (Amex) service.
The August 7 implementation of ‘Trump tariffs’ which the Government of National Unity’s trade negotiations with Washington failed to avoid on South African exports, will also not affect MSC’s decision to maintain the service.
This was confirmed by the container line’s commercial executive in Durban, Zane Godwin.
Responding to uncertainty aired earlier this week in the mainstream media whether or not the Swiss-run line would be proceeding with its plans to continue the service, especially given the expected cost impacts of the tariffs, Godwin said: “We are all systems go for the standalone service as per our last media advisory.”
The advisory in question relates to the assurance MSC gave in May that direct sailings to the US would continue despite the vessel-sharing arrangement (VSA) it had with Maersk and which was terminated along with its 2M alliance with the Danish line.
Although 2M was replaced in February by Maersk’s Gemini Cooperation VSA launch with Hapag-Lloyd, fears that the Amex service would disappear on October 1, along with the last officially scheduled Amex rotations, were dispelled by MSC.
In May, Ferdinando Cibelli, senior vice-president for MSC’s North American services, said the service would definitely continue, despite the dissolution of the 2M Alliance.
“To ensure continued reliability and to effectively meet the needs of our customers, MSC will deploy an extra four vessels to maintain a weekly direct connection between South Africa and the United States,” he said.
“In total, eight vessels will be deployed for this unique service.
“We are dedicated to supporting the trade needs of our South African partners.”
At this stage it seems the only change to the service might be the name, given the link ‘Amex’ has to the MSC-Maersk service.
Recently Terry Gale, chief executive of industry custodial body, Exporters Western Cape, said the direct service was crucial for South African exports meant for the American market, especially time- and temperature-sensitive shipments such as fruit.
If the Amex service was lost, exports to the US would have to be trans-shipped via ports in north-western Europe, such Algeciras, Rotterdam and Antwerp, all currently experiencing congestion because of increased traffic through the Mediterranean related to vessels preferring not to transit through the Suez Canal.
Maersk has confirmed that, as of October 1, it would no longer be sailing direct between South Africa and the US East Coast.
