Two major shipping companies announced: suspension of sailings

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It is reported that against the background of weak demand and geopolitical uncertainty that continues to affect the market, Mediterranean Shipping MSC, the world's largest liner company, has begun to reduce the capacity of the India-US East Coast route and officially announced the suspension of its well-known "Indus Express" route services.

This is the latest signal of recent capacity adjustments in the Indian ocean container shipping market, reflecting that major global container liner companies are reducing shipping capacity in response to slowing market demand and pressure on freight rates.is investing its shipping capacity in the Chinese export market!

According to a notice issued by MSC to customers, the reason for the suspension of the "Indus Express" route is "due to route network adjustments." In fact, the volume of cargo cannot support two ships.

Information shows that "Indus Express" is one of the two main routes deployed by MSC on the route from the west coast of India to the east coast of the United States. After the suspension of this route, MSC only retained another service route on the route from India to the east coast of the United States. Industry insiders pointed out that the capacity reduction occurred at a time when demand in the Indian export market was weak.

Market data shows that in the past month, the spot booking freight rate from India to the East Coast of the United States has basically remained in the range of US,000 to US,500 per 40-foot container, failing to show the upward trend expected in the traditional peak season. Less than one-third of China’s export sea freight.

At the same time, continued tensions in the Middle East have also brought additional uncertainty to India's export market. Some cargo owners postponed shipment plans, and the wait-and-see sentiment in the market increased significantly.

Freight forwarders and shipping companies said that the current growth in India's export volume is less than expected, and a large amount of new shipping capacity has been put into the market, resulting in an imbalance between supply and demand on routes.

Under such circumstances, controlling shipping capacity by suspending sailings, withdrawing routes or reducing sailings has become an important means for liner companies to stabilize the market.

It is worth noting that MSC has recently adopted completely different capacity strategies in the two major route markets of India and China.

Just before and after the announcement of the suspension of the "Indus Express" route from India to the East Coast of the United States, MSC has just resumed the "Pearl Service" of the trans-Pacific premium express line and re-entered the operation of the route from Yantian and Xiamen in China to Long Beach in the United States to meet the market demand brought about by the increase in freight rates on the North American route.

It is reported that MSC announced that the first voyage of its resumed Pearl Service route from China to the West America will be carried out by the 4963TEU container ship MSC Lyse V, which is scheduled to sail from Yantian Port on June 13, 2026.

Analysts believe that as the Indian export market enters the traditional off-season, and there is still great uncertainty about the situation in the Middle East and the global trade environment, there may still be further capacity adjustment measures on major routes from India to Europe and the United States in the coming weeks, including blank sailing, route consolidation, and ship withdrawal.

At the same time, the Chinese market with high freight rates and strong exports will become an important market for major container liner companies to launch new shipping capacity.

For Chinese export companies, with the current shortage of shipping space, the launch of any new routes, the resumption of old routes, and the transfer of shipping capacity from other markets to China will help alleviate the shortage of shipping space and curb the continued sharp rise in sea freight.

At the same time, Hapag-Lloyd recently announced that it will suspend its CCM route (Mexico-Central America Service) from July 2026. This route currently calls at Lazaro Cardenas, Mexico, Alcajutla, El Salvador, and Corinto, Nicaragua.

According to Hapag-Lloyd’s official notice, the last voyage will be carried out by the MV Chiapas, voyage number 686877, and is scheduled to depart from Lazaro Cardenas on July 7, 2026.

This is not a temporary adjustment, it is an official shutdown.. For exporters, the method of shipping goods to El Salvador and Nicaragua will have to change in the future.

Hapag-Lloyd offers an alternative:

• Corinto, Nicaragua: Cargo will continue to be covered via existing CCE routes

• El Salvador: The goods will be transferred to Puerto Barrios in Guatemala, and then transported by land to the final destination in El Salvador.

The suspension of CCM routes is a microcosm of Hapag-Lloyd's regional network optimization in Central America. Shipping companies are taking back shipping capacity from branch lines with insufficient coverage density and concentrating it on channels with more stable cargo volume and more profitable profits.

For foreign traders, the number of shipping options for Central America is decreasing, and transit routes and surcharges need to be calculated more carefully when calculating freight rates.