MSC's New Pricing Structure for Moroccan Ports

The Mediterranean Shipping Company (MSC) has unveiled a new pricing structure specifically for Morocco on the Far East-Morocco shipping route, which will be effective from October 19 to October 31 at the latest. The prices are set at $4,550 for a 20-foot container and $5,500 for a 40-foot container. This decision introduces additional charges for three Moroccan ports, including Casablanca, Agadir, and Nador, due to piracy risk and Suez Canal surcharges amounting to $55 and $36 per twenty-foot equivalent, totaling $182 for a 40-foot container. Notably, Casablanca is now listed under its own pricing tier, distinct from the average rates of the 'Western Mediterranean' zone, which are $3,750 and $4,500.

In fact, the price discrepancy is significant, with Moroccan rates being 21.3% lower for 20-foot containers and 22.2% lower for 40-foot containers compared to the average rates in the Western Mediterranean. However, Moroccan shipping rates remain 20.3% less expensive than Algerian rates for 40-foot containers and 15.4% lower than Tunisian rates.

Security Surcharges and Regional Implications

Two days after the initial announcement, MSC extended the security surcharges to approximately forty Mediterranean destinations, which now includes the aforementioned Moroccan ports. This extension, noted on September 30, continues a previous decision from September 3 that was limited to Eastern Mediterranean and Black Sea routes. The surcharges will take effect from October 19 until further notice, citing security concerns and piracy risks near the Arabian Peninsula, which have disrupted vessel operations and transit routes across the entire network.

The announcement from September 28 covers all loading ports in the Far East, including Japan, South Korea, and Southeast Asia, bound for Northern Europe, the Mediterranean, and the Black Sea. The pricing structure is indicative of the volatile freight rates on the Asia-Europe axis. A notable aspect of this pricing structure is that Morocco is being charged independently, rather than at the average price of transshipment zones that include ports like Barcelona, Valencia, Genoa, or Fos. This differential captures the costs associated with transshipment and terminal services to final destination ports, making it clear that Moroccan shippers pay $1,400 less for a 40-foot container compared to their Algerian counterparts.

The new rates issued by MSC reflect a decrease from previous benchmarks, specifically the rates applicable from August 15 to August 31, which were set at $5,600 for 20-foot containers and $7,700 for 40-foot containers, indicating reductions of 18.8% and 28.6%, respectively. However, the year has shown a fluctuating trend, with the Casablanca rates previously set at $3,875 for 20-foot containers and $5,350 for 40-foot containers in December 2022. Prices fluctuated throughout the year, peaking in mid-July at $5,800 for 20-foot containers and $8,700 for 40-foot containers.

Additionally, global fuel surcharges of $253 per twenty-foot equivalent for October and an emissions control zone surcharge of $15 per twenty-foot equivalent are included in the base rate. Moreover, there are additional charges for carbon limitation and carbon revision, amounting to $20 and $128 per twenty-foot equivalent, respectively, for the Mediterranean region, with the latter seeing a 6.7% increase from August levels. It is important to note that cargo categories defined by the International Maritime Organization (IMO) and high-value shipments are exempt from these general pricing structures.

As reported by barlamane.com.