Wednesday, December 7, 2022
spot_img
HomeHeadlinesMSC Announces New Air Cargo Service

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

MSC Announces New Air Cargo Service

Mediterranean Shipping Co., the world’s largest container line, will expand into air cargo using four leased Boeing Co. wide-body freighters after missing out in a bid for Italy’s flag-carrier airline.

The new business will led by Jannie Davel, a former managing director of cargo at Delta Air Lines Inc. who has also worked at Emirates and DHL, with the 777-200Fs to be provided by Atlas Air, which will fly them on MSC’s behalf.

“This is our first step into this market and we plan to continue exploring various avenues to develop air cargo in a way that complements our core business,” MSC Chief Executive Officer Soren Toft said in a statement Monday.

The Swiss firm joins French rival CMA CGM SA in establishing an in-house air-freight fleet. CMA began flying cargo jets in 2021 and in May, swollen with profits generated during the coronavirus pandemic, agreed an alliance with Air France-KLM that included a stake of as much as 9% in the debt-laden airline.

A.P. Moller-Maersk A/S also agreed in 2021 to lease three Boeing 767 freighters and purchase two new 777Fs, to be operated and managed by cargo specialist Star Air.

Still, the news from MSC comes as container shippers confront a downturn as weaker demand pushes prices to their lowest in more than two years. Air-freight volumes are also dipping and had returned to near pre-Covid levels as of July, down 10% from a year earlier.

MSC spent the past year increasing its ship capacity while bidding for Italian state carrier ITA Airways, an approach that was rejected last month by the outgoing Italian government in favor of one from an investor group including Air France-KLM and Delta.

It’s not yet clear whether the sale decision will change now that Giorgia Meloni, who had opposed it, is poised to lead the country’s most right-wing government since World War II, or if MSC remains interested.

[bloomberg]

Related Posts

Video

Finance & Economy
Shipping News
Ports

Golden Ocean launches $100m stock buyback

The Board of Directors of Golden Ocean has on October 4, 2022, authorized a share buy-back program of maximum USD 100 million to purchase...

Diana Shipping Signs Term Loan Facility With Nordea Bank

Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership and bareboat charter-in of dry bulk vessels, announced that...

Rival of Matson can proceed with antitrust lawsuit

Two Matson Inc subsidiaries must face claims from rival container shipping company American President Lines LLC that Matson is abusing its market power over...

Major Shareholders Raise Offer for Seaspan Takeover

A consortium led by former Berkshire Hathaway Inc. executive David Sokol and Canadian investment group Fairfax Financial Holdings Ltd raised its offer to buy...

2020 Bulkers: Conversion of index-linked charter hire for Bulk Sao Paulo

2020 Bulkers has converted the index-linked charter for Bulk Sao Paulo into fixed rate charter at US$16,146 per day, gross, for the period from...

Baltic index flat as panamax gains offset capesize losses

The Baltic Exchange’s dry bulk sea freight index was little changed on Monday as...

Cyprus: Green light for one-stop-shop in shipping sector

The Parliament of Cyprus this week unanimously approved the creation of a one-stop-shop framework...

Cyprus: Green light for one-stop-shop in shipping sector

The Parliament of Cyprus this week unanimously approved the creation of a one-stop-shop framework...

Norway limits access for Russian fishing trawlers in security push

Norway said on Thursday it would impose limits on Russian fishing vessels using its...

Stolt-Nielsen: Net profit continues to improve in third quarter

Stolt-Nielsen Limited yesterday reported unaudited results for the third quarter and first nine months...

Los Angeles: Unprecedented Year Increases Port Emissions

Emissions from port-related sources increased in 2021 compared to the previous year, according to the Port of Los Angeles’ latest Inventory of Air Emissions....

Los Angeles: Unprecedented Year Increases Port Emissions

Emissions from port-related sources increased in 2021 compared to the previous year, according to the Port of Los Angeles’ latest Inventory of Air Emissions....

Greece names preferred investor for Igoumenitsa port

Greece's privatisations agency on Thursday named an Italian-led consortium as preferred bidder in the sale of a majority stake in the port of Igoumenitsa....

Piraeus Port posts all-time record in revenue & profitability

Piraeus Port Authority (PPA) S.A. reported 29.3% turnover increase for the first half of 2022, amounting to 93.1 million euros compared to 72.0 million...

Hapag-Lloyd AG acquires terminal business of SM SAAM S.A.

Hapag-Lloyd AG and SM SAAM S.A. signed a binding agreement under which Hapag-Lloyd will acquire 100 % of the shares of SAAM Ports S.A....