Status change for PAD/NASP service

THE FORMAL structure of the PAD/NASP service, formerly operated by CMA CGM and Marfret as a vessel sharing agreement, has changed in a move Marfret says responds to difficult circumstances at the Panama Canal.

Under the new arrangement, first revealed by a filing with the US Federal Maritime Commission last week, CMA CGM becomes the sole operator of the weekly service, which has just implemented a new off-season structure that sees the Atlantic leg excised for six months. Marfret thus becomes a slot-charterer.

Marfret is stressing that there is no change to cargo and booking arrangements for its customers on the service, whereby the company’s sole ship, the 2,506 TEU Marius, has been chartered to CMA CGM, effective from the vessel’s Melbourne call on 20 October. Seaway Agencies will continue to represent Marfret in Australia.

Explaining the move, Marfret said "in 2026, transiting the Panama Canal has become a real challenge for liner services.

"For our NASP service, which connects Europe and the United States with Tahiti, New Caledonia, Australia and New Zealand, there is no real alternative: sailing around South America would add several days to the voyage. The canal is therefore essential. This year, it is also one of the most contested passages on the planet," it stated.

"The canal runs on fresh water, and water is the first thing to run short. The El Niño climate phenomenon disrupts rainfall patterns around the world and can bring more severe dry spells to Central America. Lower rainfall then depletes the reserves of Gatún Lake, which the canal depends on. To preserve this resource, the Panama Canal Authority has reduced the number of daily transits.

"On top of this natural constraint came a shockwave from the Middle East. Tensions around the Strait of Hormuz have pushed Asian buyers towards American gas and oil, exported from the Gulf of Mexico and shipped to Asia via Panama. LNG carriers and tankers have crowded the canal’s approaches just as its capacity was tightening," Marfret said in a customer newsletter.

"To transit the canal, vessels book a passage slot in advance, allocated according to a ranking: the more transits a shipowner makes each year, the higher its ranking. Once the slots available for booking are taken, only one option remains: last-minute auctions.

"To keep its sailings on schedule, Marfret has had to take part in these auctions on several occasions. Prices have reached unprecedented levels this year, and the chances of winning are increasingly uncertain."

To prevent these uncertainties from undermining the regularity of the service, Marfret has decided to temporarily reorganise it with CMA CGM, chartering Marius to its French compatriot for 12 months.

"[The ship] now benefits from our partner’s ranking, making it easier to secure passage slots," Guillaume Vidil, CEO of Marfret, said. "Our customers expect reliability from us, whatever the market turbulence. That commitment is what guided our decision."