Mediterranean Shipping Co (MSC) is continuing to expand its fleet with secondhand purchases while adding more capacity to the profitable transpacific trades.

The Geneva-based liner operator is spending more than $200m to purchase three more midsized boxships from the German secondhand market, according to European brokers.

The company is reported to have paid around $78m to purchase the 8,238-teu Conti Everest (built 2004), two brokers said.

The vessel is currently operated in the fleet of German shipping services and ship management group NSB.

The liner giant is also purchasing another two classic panamax vessels from US-based fund Mangrove Partners, brokers said.

The 4,300-teu MP The Brown and MP The Law (both built 2009) have operated in the fleet of Hamburg-based NSC Holding after they were acquired close to scrap prices in 2016 and 2017.

Brokers reported that the vessels are being sold to MSC for about $64m each.

Big profit

MSC and New York-based Mangrove do not comment on transactions, but the seller appears to be making a big profit on its boxship sales.

TradeWinds reported earlier this month that the company sold four classic panamaxes to MSC for around $240m.

The company had acquired the 4,852-teu MP The Edelman, MP The Brady, MP The Gronk (all built 2005), as well as the 4,844-teu MP The Belichick (built 2006), in the second half of 2017 for a combined price of just $32m, according to VesselsValue.

The recent purchases add to MSC’s tally of secondhand acquisitions, which amounts to over 100 ships in the past year, according to Alphaliner estimates

The latest three acquisitions are already on charter to the Geneva operator in a market where rates have risen to at least $40,000 per day for three-year fixtures.

Tapping into booming transpacific market

MSC is also expanding its services in the booming transpacific market in response to "strong demand" and "challenging service schedules".

The company plans to launch two new weekly shuttles connecting China with Long Beach in the US. The 5,018-teu MSC Bhavya (built 2005) will connect Dachan Bay and Shekou in China with Long Beach. A second vessel, the 5,018-teu MSC Anya (built 2005), will connect Shanghai with Long Beach.

MSC said the two services, called Puma and Mustang, will continue operating “until further notice”.

Freight rates from Shanghai to the US west coast have risen to $20,586 per 40-foot equivalent unit, which is over 453% higher compared to the same time last year, according to the Freightos Baltic Index.