MSC, the world’s largest ocean carrier, has announced the cessation of diverted container deliveries outside of the Port of Baltimore following a container ship accident near the port that resulted in a devastating bridge collapse.
With the closure of the Baltimore port indefinitely, the responsibility for cargo pick-up at diverted ports and transport to final destinations now falls on the shipper.
In an email obtained by CNBC on Thursday, MSC informed customers that containers already en route to the Port of Baltimore will be rerouted and discharged at alternative ports, where they can be collected by customers.
“For these shipments, the contract of carriage will be considered terminated at the alternate port, and any storage, D&Ds, and on-carriage costs to the originally intended destination will be the sole responsibility of the cargo owner,” stated the MSC advisory.
The company further explained that passage to and from Baltimore is currently impossible and is not expected to resume for several weeks, if not months.
MSC, along with other major carriers like CMA CGM, COSCO, and Evergreen, has taken similar actions in response to the situation, with some declaring “force majeure,” a legal term allowing for the waiver of contract duties due to uncontrollable events.
Acknowledging the disruption caused by this contingency plan, MSC emphasized that it is a necessary response to unforeseen circumstances beyond their control, conducted in compliance with the terms of the contract of carriage.
Despite this, Maersk, another major carrier, has committed to providing transport from diverted ports for its customers.
Notably, Maersk was the charterer of the Dali, the 10,000-container capacity vessel involved in the accident.
After experiencing historic profits during the pandemic boom, ocean carriers have encountered financial and operational challenges due to vessel overcapacity, declining earnings, and incidents like the Red Sea Houthi attacks and Panama Canal drought, necessitating costly diversions from major global trade routes.
