Maersk expands India-US Trade route with new Mundra Port call on MECL1 Service

COPENHAGEN : Maersk is seeking to capture a larger share of the India-US Trade market, which experts believe holds significant potential due to ongoing trade diversification in Asia. The Danish shipping giant is set to enhance its MECL1 Service loop to strengthen its position against competitors like CMA CGM, Hapag-Lloyd, and MSC.

Industry sources reveal that MECL1 will drop its call at Algeciras, Spain, and instead add Mundra to its existing stops at Nhava Sheva and Pipavav in India. This change is slated to take effect in March.

APM Terminals Algeciras has historically served as a hub for Maersk’s cargo flows to and from Africa, Europe, and the Far East. The decision to bypass Algeciras will allow Maersk to allocate additional capacity for Indian exports.

“The updated schedule is designed to offer Indian customers faster transit times for shipments to the US East and Gulf Coasts,” a Maersk representative stated.

Currently, the MECL1 rotation includes Jebel Ali, Port Qasim, Pipavav, Nhava Sheva, Salalah, Algeciras, Newark, Charleston, Savannah, and Houston, according to available data.

A freight forwarder noted, “Maersk is aiming to boost its market share for India-US cargo as it embarks on new collaborations for other trade routes. The market is gearing up for intensified competition in the coming months.”

The India-US trade lane is notably excluded from the new Gemini partnership between Maersk and Hapag-Lloyd, although the two carriers retain the flexibility to collaborate on other transshipment-heavy routes, including mainline sailings connecting through Colombo port in Sri Lanka.

Hapag-Lloyd now operates its standalone TPI loop for the India-US East Coast trade, following its withdrawal from consortium arrangements with CMA CGM. The TPI service features a rotation of Port Qasim-Nhava Sheva-Mundra-New York-Norfolk-Savannah-Charleston-Port Qasim.

CMA CGM also runs an independent service, the Indamex, with a similar rotation: Port Qasim-Nhava Sheva-Mundra-Colombo-New York-Norfolk-Savannah-Charleston-Port Qasim.

Meanwhile, MSC offers two weekly sailings on the tradelane but faces challenges with longer transit times due to its more extensive port coverage.

Singapore-based ONE has been expanding its footprint in the India-North America market with the launch of its independent WIN service in May 2024. However, vessel availability issues have resulted in sporadic blank sailings, impacting service reliability.

Despite these efforts, carriers on this route have struggled to align supply with current demand. Excess capacity has led to significant rate reductions as carriers compete for bookings. Average freight rates from Nhava Sheva or Mundra to North America have plummeted to around $1,500 per FEU—a stark contrast to the $11,000 peak rates seen just six months ago.