MSC Halts Lone Star Service to New Orleans Amid Shipping Challenges

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Container ships lining the docks at the Port of New Orleans, symbolizing international trade.

News Summary

The Mediterranean Shipping Company (MSC) has suspended its direct Lone Star service to the Port of New Orleans due to ongoing global container shipping challenges. This significant change affects transport between Louisiana and Asian ports. The service suspension comes as MSC evaluates its routes amid decreasing demand for container shipments, contributing to recent trends in local trade operations. Despite the suspension, MSC is committed to maintaining other services while the Port of New Orleans plans future improvements, including the Louisiana International Terminal project.

New Orleans – The Mediterranean Shipping Company (MSC) has announced a temporary halt in its direct Lone Star service to the Port of New Orleans, in response to ongoing challenges in global container shipping. The suspension, effective immediately, affects transport between Louisiana and several Asian ports, marking a significant change for local trade operations.

This decision is aligned with a broader trend in shipping, as MSC evaluates its routes amidst decreasing demand for container shipments. Container shipping traffic at the Port of New Orleans has been in decline, primarily attributed to evolving global trade policies under the administration of President Donald Trump.

As part of the route adjustments, MSC will suspend two routes between Asia and the U.S. while modifying an additional four routes. Despite the suspension of the Lone Star service, MSC remains committed to transporting cargo from New Orleans to Asia through alternative routes. The company continues to offer four other weekly services from the port.

In the context of these changes, Beth Ann Branch, the CEO of the Port of New Orleans, highlighted that MSC’s Lone Star service is one of only two direct shipping routes from New Orleans to Asia. The suspension comes during a period when import demand has seen a significant drop, reflecting broader issues within the shipping industry.

Port Commissioner Todd P. Murphy characterized the service suspension as a temporary setback, recognizing that fluctuations in shipping demand can impact local job markets over time. While MSC does not foresee the suspension becoming permanent, the company indicates plans to reinstate the service as soon as market conditions improve.

The last scheduled call for the MSC Lone Star service in New Orleans occurred on June 8, 2024. To put the recent trends in perspective, data shows that the Port of New Orleans processed slightly over 500,000 twenty-foot equivalent units (TEUs) in 2024. This represents a decline of more than 20% compared to nearly 650,000 TEUs handled in 2019. The challenges faced by the container shipping sector are, in part, caused by extended tariff policies and their international economic repercussions.

Despite the suspension of the Lone Star service, the Port of New Orleans is actively investing in its future to accommodate larger vessels and boost its shipping capacity. The proposed Louisiana International Terminal (LIT) project aims to construct a new terminal in St. Bernard Parish, allowing the port to handle the largest container ships. This new terminal, costing an estimated $1.8 billion, is supported by substantial investments from MSC and Ports America, totaling $800 million.

The LIT project is expected to relieve the capacity constraints posed by the Crescent City Connection bridge. The construction is slated to commence in 2025, with operations planned to be phased in between 2028 and 2031. Once completed, the LIT is forecasted to create 32,000 jobs nationwide and generate around $1 billion in tax revenue by 2050.

Recent federal grants awarded to the Port of New Orleans, totaling over $300 million, are aimed at enhancing infrastructure, including the LIT project. This terminal is designed to optimize intermodal services and provide connectivity with 14,500 miles of inland waterways across multiple states, reinforcing the port’s strategic position in international trade.

Container shipping currently constitutes approximately 40% of the Port of New Orleans’ overall revenue, which has yet to fully recover from pandemic-related disruptions. The fluctuations in demand for container shipping underscore ongoing challenges within an evolving trade landscape.