The shipping company MSC (Mediterranean Shipping Company), has increased its TEU by 7.5%, a movement of great importance if we consider that this is the third largest cargo cruise line in the world and the one that has the current leadership in a part of the European market. But what do we mean by TEU and how has such an operation been carried out?
TEUs (Twenty-foot Equivalent Unit) are basically a unit of measurement with some accuracy that is used in foreign trade for the purpose of calculating the estimated load capacity of one or more containers. This unit of measurement is still of great importance for the logistics sector today since it is used absolutely in all port operations in both developed countries and those in the process of becoming so.
Factors that have led to the increase of TEU in MSC
The 7.5% increase in the TEU of the Mediterranean Shipping Company is not pure coincidence or a spontaneous event, since the conditions of the industry have influenced quite positively in what has been this operation in logistical terms. The MSC has reported that factors such as the decrease in the cost of freight from China, stronger contracts, and a clear improvement in the conditions of the transatlantic market, have made it possible for this shipping giant to take advantage of the circumstances to expand its cargo capacity.
The strong competition experienced in the logistics sector is also another reason for transport companies to make such extensive movements in terms of improving their infrastructure. With this increase in capacity, MSC reaffirms its efforts to be at the forefront along with other giants such as Maersk, CMA CGM, Cosco Group, Hapag-Lloyd, Evergreen, ONE, HMM, Yang Ming Marine and ZIM, which have already positioned themselves among the most important shipping companies in the world.
Given the efforts that major brands make to expand their TEU capacity in their facilities, it is expected that investment and logistics operations will continue to grow during 2023. Which in turn makes it extremely necessary to hire an expert advisor who knows how to detect the possible risks of your business in order to provide recommendations that guarantee the well-being of your reputation and the satisfaction of your customers. At ONUS Insurance we have the highest quality and experience in terms of insuring your goods, with plans that will definitely adapt to your specific needs as a carrier.