Responding to the Current Space Crunch: MSC Launches New Routes
Date:2026-06-05
MSC’s core strategy for addressing the current shortage of shipping space is a "two-pronged approach": on one hand, the carrier is urgently launching new routes to boost capacity; on the other, it is simultaneously raising various surcharges to manage demand and cover costs.
The specific, latest measures are outlined below:
**Launching a New Middle East Route to Directly Combat the "Space Crisis"**
The most significant move is the launch of a brand-new direct service connecting Dalian, China, with the Middle East region. This initiative aims to directly alleviate capacity pressure on the Middle East trade lane from the supply side.
**New Route Key Information at a Glance**
| Item | Specific Details |
|-----------------|----------------------------------------------------------------------------------|
| Route Name | SHIKRA |
| Launch Date | May 28, 2026 (Maiden Voyage) |
| Operating Mode | Weekly service (one sailing per week) |
| Deployed Capacity | 8 ultra-large container vessels (ULCVs) ranging from 20,000 to 24,000 TEU |
| Covered Markets | India, Pakistan, UAE, Oman, and other Gulf region destinations |
| Core Advantages | Dalian Port’s first direct route to the Middle East; overall transit time expected to be reduced by at least 10 days |
**Simultaneous Increase in Emergency Surcharges**
While increasing capacity supply, MSC is also utilizing pricing mechanisms to address rising costs and robust demand.
**Imposition of Emergency Fuel Surcharge (EFS):** Effective June 1, 2026, MSC has raised its Emergency Fuel Surcharge to cover additional fuel costs resulting from route diversions and high oil prices.
**Increase in Peak Season Surcharge (PSS):** For core trade lanes such as Asia-Europe and the Mediterranean, MSC has—effective June—raised FAK (Freight All Kinds) rates and imposed a Peak Season Surcharge. This move aligns with the overall market trend, which has seen freight rates surge by over 60% in a single month.
**Key Reminders for Shippers**
In the current market environment, several points require special attention:
**Widespread "Rollover" Phenomenon:** Due to the extreme shortage of shipping space, "rollover rates" (instances where booked cargo is left behind) at major ports in East and South China are reaching as high as 55%. Even after successfully securing a booking, shippers may still face last-minute adjustments or cancellations by the shipping lines. **Beware of Voyage Adjustments:** Although shipping capacity is currently being increased, during periods of low demand—such as the off-season around the Lunar New Year—MSC may adjust its sailing schedules in response to market conditions (including the cancellation of voyages). Therefore, it is essential to closely monitor voyage updates immediately after booking your shipment.
**Plan and Confirm in Advance:** Shippers are strongly advised to book cargo space as early as possible. Furthermore, you should repeatedly verify the specific voyage details, transshipment arrangements, and a breakdown of all applicable surcharges with your freight forwarder to avoid delays caused by last-minute changes (e.g., a direct sailing being switched to a transshipment route) or a lack of information transparency.
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