PrintPrintThe Danish company announced today that, as part of changes to its WestMed service that runs between the Mediterranean region and North America, it will be routing regional cargo to Norfolk, Va., and Savannah instead of into Charleston. The changes are brought about by Maersk’s new vessel-sharing agreement with French carrier CMA-CGM and will start in March.
UPDATE: Maersk Line's corporate response
Q. Is this simply a structural change to Maersk’s routing or does this reflect a continuation of the draw down of Maersk Line services to Charleston?
A. This is both a structural change to our services reflecting a new vessel-sharing agreement with CMA-CGM, as well as a continuation of the previously announced draw down of services to Charleston. We have worked very closely with our customers to ensure that their needs will continue to be met and we believe that this new service, with improved transit times and a wider scope, will provide them with an even more reliable and competitive service.
Q. As such, is this a statement on the state of discussions between Maersk and the SPA?
A. This action is not directly related to the discussions currently ongoing with the SCSPA; it is a reflection of the business case with which we are faced in Charleston. When compared to the cost under our current agreement with the Port of Charleston, other regional ports have provided a more cost-effective option for this service and our deployment reflects this.
However, our discussions with the SPA remain active and positive in nature. If the business case in Charleston were to change in a way that made our costs competitive with other major shipping lines in the port and with our costs in other nearby ports, then we would, as a matter of good business practice, reconsider any further adjustments.
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ORIGINAL REPORT:
By Molly Parker
mparker@scbiznews.com
Published Jan. 28, 2009
Starting in March, Maersk Line’s weekly calls to the Port of Charleston will be fewer by three.
The Danish company announced today that, as part of changes to its WestMed service that runs between the Mediterranean region and North America, it will be routing regional cargo to Norfolk, Va., and Savannah instead of into Charleston.
The changes are brought about by Maersk’s new vessel-sharing agreement with French carrier CMA-CGM.
The news is another blow to the S.C. State Ports Authority, which, along with every other port in the nation, has been hammered in recent months by declining container traffic.
Maersk Line, the world’s largest shipping line and the Port of Charleston’s biggest customer, announced late last year that it would be leaving Charleston at the end of 2010. Negotiations are ongoing among lawmakers, port officials and Maersk representatives to keep the company here.
At press time, a U.S.-based Maersk spokesman was seeking comment from company executives as to whether — and if so, how — this announcement relates to those ongoing discussions. The company’s news release says the change is part of a consolidation necessary for the “overall stability of the trade.”
It does not indicate that the change had anything to do with operations at the Port of Charleston, nor does it explain why Norfolk and Savannah were chosen over Charleston.
Regardless, the end result is one fewer vessel a week calling on Charleston. That’s on top of Maersk’s plan to move its South Atlantic Express to neighboring ports by February. That trade line accounts for roughly two ship calls per week.
Currently, Maersk makes about seven calls a week to Charleston, accounting for 20% of the SPA’s container business. With the loss of those two trade lines, Charleston will see about 40% of its Maersk business move to nearby ports.
SPA spokesman Byron Miller said the move will “impact a number of companies that provide business to the ships and the cargo that they carry.”
“You can be certain that the other carriers in the port, as well as the ports authority, will be working hard to ensure that we keep as much of that cargo as possible here.”
Reach Molly Parker at 843-849-3144.
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