Continuing the trend toward larger, more efficient ships, MSC announced that they were changing their Far East-US Golden Gate service to nine ships of 6,700 TEU’s each. These nine vessels will replace the ten 5,000 TEU ships that had previously operated in the service. This also converts the service from a round the world service to one that transits the Suez Canal each way because the new ships are too large for the Panama Canal.

For years, many in the commercial real estate world have been denying the trend toward bigger ships.  If you’ve been paying any attention to the industry, you realize that denial would be akin to denying Obama would be elected President.  You don’t have to “predict” it, it has already happened.  The big ships are here and more are coming.

Recently, MSC took ownership of the 14,000 TEU vessel named MSC Danit.  This new ship comes online only weeks after MSC took delivery of the 14,000 TEU vessel MSC Daniela.  MSC Danit is the product of South Korea’s Daewoo shipyards and MSC Daniela was built by Samsung Heavy Industry.  Once delivered and fully commissioned, it is anticipated that the MSC Danit will join the Far-East Mediterranean Jade service, which MSC is upgrading from 8,000-9,000 TEU ships.

This latest delivery for MSC demonstrates two trends which are heading towards the US like a freight train.  First, the shipping lines believe in the value of the big ships and want to employ them.  A quick peek through the order book shows that there are currently twenty-five 10,000+ TEU ships in service and 186 under construction.  Second, the shipping lines want to upgrade services (where possible) to the larger ships.  So, even if MSC isn’t bringing a 14,000 TEU ship to US shores today, they are freeing up 8,000 TEU vessels that they will certainly want to utilize in other services.  Even an 8,000 TEU ship poses a logistical challenge to many of the US ports today.  Whether it’s bridge height, channel depth, channel width or crane capacity many of the US ports can’t handle a ship that large.  And we haven’t even begun to discuss whether they could handle it efficiently.  That’s a topic for another day…