The unprecedented order for over 100 feeder vessels by Mediterranean Shipping Company, totalling approximately 300 000 TEU, comes despite industry-wide overcapacity, currently estimated at 18-20, and raises questions about the logic behind the procurement.
Traditionally, shipping economics cautions against expanding capacity when the market is already saturated, as this tends to depress freight rates and profitability.
Yet MSC's aggressive expansion suggests a strategy that goes beyond conventional market optimisation.