MSC Announces: Service Suspension! COSCO Announces: PSS Increased by Another USD 2,000

From capacity adjustments to surcharge increases, liner companies are responding to global market changes through different strategies. Judging from the current trend, more shipping capacity is accelerating to be concentrated in the Chinese export market, and the peak season market for trans-Pacific routes continues to heat up.

Recently, MSC issued a notice to customers stating that due to route network adjustments, the company will suspend the operation of the "Indus Express" route from India to the East Coast of the United States.

It is understood that "Indus Express" is one of the two core routes deployed by MSC in the market from the west coast of India to the east coast of the United States. After the suspension, MSC only retained one other service route on this route to continue operating.

The suspension of flights is widely regarded by the industry as an important signal of weakening demand in the Indian export market.

Market data shows that in the past month, the spot 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, without the rise expected in the traditional peak season. In contrast, the current freight rates for China's exports to the United States are significantly higher, and the prices for some routes are even several times higher than those in the Indian market.

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, resulting in lower-than-expected growth in overall cargo volume.

Industry insiders said that the Indian market has attracted a large amount of new shipping capacity investment in the past year, but demand growth has not kept pace, leading to a gradual imbalance in the relationship between supply and demand. In this case,Shipping companies have reduced their transport capacity through suspension of sailings, withdrawal of routes, blank sailing and reduction of sailings, which has become an important means to stabilize the market and support freight rates..

It is worth noting that just before and after announcing the suspension of Indian routes, MSC adopted a completely different strategy in the Chinese market.

Recently,MSC announced the resumption of the trans-Pacific premium express line "Pearl Service" and re-entered the operation of the route from China's Yantian Port (4.230, -0.04, -0.94%) and Xiamen Port to the United States Port of Long Beach..

According to the plan,The first voyage of this route will be carried out by the 4963TEU container ship MSC Lyse V and will set sail from Yantian Port on June 13.

This sharp contrast in capacity increases and decreases reflects that liner companies are dynamically adjusting their global capacity layout based on changes in profitability and demand in different regional markets.

Simply put, shipping capacity is flowing from markets with weak demand to markets with stronger demand and higher returns, and the Chinese export market is becoming one of the key investment directions of global liner companies.

At the same time, price increases on U.S.-Canada routes continue. Following the previous announcement of the comprehensive rate increase surcharge (GRI), COSCO Shipping recently announced again that it willFrom June 15 to June 30, 2026, a peak season surcharge (PSS) will be levied on goods exported to the United States and Canada from the Far East, Oceania, the Indian subcontinent and the Middle East..

The specific charging standards are as follows:

20-foot container (20GP): US,600/carton

40-foot container (40GP): US,000/carton

40-foot high container (40HQ): US,000/carton

45-foot container (45HQ): US32/carton

PSS stands for peak season surcharge, which is usually levied during periods of strong market demand and tight space availability. It is a temporary surcharge..

In fact, this is not the first time COSCO has raised prices recently. As early as May 26, COSCO Shipping announced that it would implement a new round of GRI (General Rate Increase, comprehensive rate increase surcharge) from July 1.

According to the announcement, the maximum charging standard for goods destined for the United States is:

20-foot container: USD 2,400

40-foot container: US,000

40-foot high cabinet: ,375

45-foot container: ,798

The charging standards for Canada are basically consistent with those in the U.S. market..

Industry insiders pointed out that although PSS and GRI are both additional charges, they are different in nature.

PSS mainly reflects the tight capacity caused by the surge in market demand during the peak season.situation, andGRI is an important tool for shipping companies to adjust the overall freight rate system.. When the two charges are superimposed, the actual transportation cost will be further pushed up.

Judging from the current market conditions, the peak season for American lines has started ahead of schedule.

On the one hand, U.S. import demand continues to pick up, and some cargo owners are rushing to ship goods before the relevant trade policy window; on the other hand, shipping companies continue to control cabins and insure prices, with tight slots on popular routes, frequent dumping and rolling of warehouses, and the market supply and demand relationship has further tightened.

In this context, many liner companies, including MSC and COSCO, areActively adjust transportation capacity layout, investing more ship resources into trans-Pacific routes with higher returns.

For Chinese export companies and the freight forwarding industry, this capacity transfer will help alleviate the pressure on space on some routes, but it will be difficult to change the overall market supply shortage situation in the short term.

The market generally believes that driven by the continued growth in cargo volume, stricter capacity management, and the successive implementation of surcharges such as PSS and GRI, freight rates on the U.S.-Canada route still have room for further growth.

AndWith the arrival of the traditional peak season in July, a new round of competition between global liner companies around shipping capacity and prices may further intensify, and trans-Pacific shipping rates are also expected to hit new highs since 2026..

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