By Andrew Macdonald
Exclusive: Why Hapag Lloyd’s Halifax Bound Container Cargo Could Become Fewer – It Is Concerning Carrier Beefing Up Calls to Port Saint John Over The Years
In the Port of Halifax world, which competes against U.S. East Coast Ports, such as New York/New Jersey, there is also strong competition from Port Saint John in New Brunswick.
Since 2021, Hapag Lloyd has been beefing up its cargo movements at Port Saint John.
Hapag Lloyd has long called the Port of Halifax but it is entirely possible its cargo offerings in Halifax could diminish.
This is so, because ACL/Atlantic Container Line, which calls the PSA Fairview Cove terminal, in the city’s Northend, is ending a business relationship of renting out space on its vessels to Hapag Lloyd.
That term is slot charter, and beginning in October, ACL will no longer rent out space on its ships to Hapag Lloyd. ACL is a long-time customer of Fairview Cove.
See a separate story in this edition of The Macdonald Notebook on why ACL is ending this slot charter for Hapag Lloyd.
But, the ending of the rental agreement – slot charter – is the main reason, I am pondering whether Hapg Lloyd will lessen its cargo input through the Port of Halifax.
Port Saint John officials did not return my call this week, after I asked if Hapag Lloyd is planning another service call to the NB port in October. There is chatter that the carrier might push even more of its Halifax cargo to the NB port, beginning in the fall.
In 2023, Port Saint John trumped the Port of Halifax, when it announced Saint John would get a regular Mediterranean container service in NB.
“An agreement announced by Canadian Pacific and Hapag Lloyd in late 2020 is now firmly in place via a notice to customers made (last spring) about the startup of a weekly container service on rotation from the Mediterranean to Saint John, New Brunswick. The first vessel of the new regular service, the Liverpool Express, arrived on May 27th, 2023,” said Port Saint John last spring.
Hapag Lloyd’s “Inbound cargo will utilize the geographic and intermodal attributes of Port Saint John, particularly the Canadian Pacific service which offers a significant rail distance advantage into the US Midwest.”
Port Saint John said: “The addition of Hapag Lloyd’s weekly Mediterranean import service in Saint John is another achievement in the long-term strategy toward the modern, port of the future. We look forward to solidifying our long-term relationship with Hapag Lloyd as we grow our business together with DP World and Canadian Pacific, partners who are committed to performance, service, and optionality.”
In recent years Port Saint John oversaw a multi-year $205 million container terminal modernization project, which was supported through a partnership with the Governments of Canada and the Province of New Brunswick.
That project, now complete “continues to bring new business and investment to our region as Port Saint John’s value proposition is elevated in the marketplace,” said Port Saint John.
In 2023, Matthew Leech, DP World Americas, CEO & Managing Director said “We are pleased to welcome Hapag-Lloyd to the DP World Saint John terminal. Hapag-Lloyd’s decision to bring a Trans-Atlantic service to Saint John as the first port of call in North America reconfirms that the terminal’s continued development, combined with CP’s rail reach into North America’s hinterland, are key in offering a more efficient supply chain option to carriers and customers. This new service will also support the local economy and provide increased access to US markets, highlighting the benefit of the Port of Saint John, CP and DP World’s collaboration.”
Hapag Lloyd also enhanced its service at Port Saint John in 2022, with an additional service.
“Canadian Pacific and Hapag-Lloyd AG announced (in 2022) an additional call into Port Saint John, N.B., via a seasonal extra loader in another step forward for the second fastest growing container port on the Eastern seaboard of North America. This additional call follows their inaugural service call into Port Saint John in May 2021, connecting via CP rail service to inland markets in Canada and the United States.”
The container terminal project at Port Saint John, completed earlier this year will allow that port to “soon double its container throughput capacity with the completion of the Modernization Project. Increased demand from private sector partners has led to Port Saint John’s proposed Enhanced Modernization which would add 18 additional acres of on-dock land and increase throughput capacity to 800,000 TEU, said Port Saint John.
“We are pleased to welcome Hapag-Lloyd’s second connection at Port Saint John, linking this Port with markets in Northern Europe,” said Craig Bell Estabrooks, CEO, Port Saint John, in a 2022 statement.
A Hapag Lloyd vessel at Port Saint John, in New Brunswick. (Port Saint John image).
