Zim to Launch VSA with MSC

Posted 9 months ago by NZ Freight

Zim’s decision to withdraw its ships from the Asia-Australasia trades and enter into a vessel-sharing agreement (VSA) with MSC (Mediterranean Shipping Company). This move involves several changes to Zim’s services in the region:

  1. Suspension of Oceania-related Services: Zim will suspend its three Oceania-related services: Asia-Australia CAX, South China/South-east Asia-Australia TFX, and Trans-Tasman N2A services.
  2. Replacement for CAX Service: Zim plans to join MSC on its Panda loop, which will be branded as ZAX by Zim. This replacement for the CAX service will deploy seven 5,000 twenty-foot equivalent unit (TEU) ships, with Zim contributing three of these vessels.
  3. Introduction of ZAO and ZOX Services: Zim will replace its TFX and N2A loops with two new services: ZAO and ZOX. These services will help maintain connections to New Zealand.
  4. Asia-Australasia VSA: The vessel-sharing agreement with MSC is expected to enhance Zim’s position in the Asia-Australasia region. The EVP (Executive Vice President) of Intra-Asia, Danny Hoffman, expressed excitement about this new phase for Zim. The restructuring of Zim’s Oceania services network, in cooperation with MSC, aims to improve reliability and enhance customer offerings.
  5. Impact on MSC’s Panda Service: MSC stated that the VSA with Zim would enhance its Panda service. Alongside its Capricorn and Kiwi Express loops, the Panda service will continue to provide premium direct services between Asia, Australia, and New Zealand.
  6. Zim’s Current Status: Zim is currently ranked as the 10th container line globally. It operates with a capacity of 584,000 TEU across a fleet of 134 ships, most of which are chartered. Zim also has a significant order book of 38 long-term chartered vessels with a nominal capacity of 306,000 TEU.

This move represents a strategic decision by Zim to restructure its services and collaborate with MSC to strengthen its presence in the Asia-Australasia trades. The partnership is expected to offer improved services, reliability, and options for customers in the region.