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Direct China–Peru services: MSC and COSCO step up competition for Pacific container trade

Direct China–Peru services: MSC and COSCO step up competition for Pacific container trade
yesterday at 14:33 5

Competition to speed up seaborne trade between China and Peru is heating up following the opening of a major Chinese-owned port on Peru’s Pacific coast.

 

Container shipping giant MSC Mediterranean Shipping Company is launching a weekly direct service from Ningbo, China to Callao, the main port serving the Peruvian capital Lima.

 

Previously, COSCO Shipping completed construction of its own $1.3 billion deep-sea port at Chancay, just up the coast, enabling the Chinese carrier to start a similar weekly direct line to Shanghai.

 

MSC is currently the world’s largest container line, while COSCO ranks fourth. For now, their routes are seen as complementary:

 

  • one service connects Peru to China in about 21 days,

  • the other brings cargo into Peru in around 23 days.

 

Together, they underline the growing importance of bilateral trade, even as the trend raises concerns in Washington. China is Peru’s top trading partner and the main buyer of copper, the country’s flagship export, while Peru imports a broad range of Chinese goods — from textiles and electronics to cars.

 


 

From 40–45 days down to 21–23: the impact of direct services

 

According to Fernando Fauché, Commercial Director at APM Terminals Callao, the traditional routing for Chinese imports into Peru was much slower:

 

“Imports from China traditionally arrived in Peru after calling at a major hub such as Mexico, then continuing south through Central America, Panama and Colombia. That meant a total transit time of 40–45 days.”

 

Cutting transit time has become the key selling point for Chancay, which Chinese President Xi Jinping personally inaugurated during the APEC summit in Lima last year.

 

However, MSC’s new direct service from Ningbo shows that Chancay’s influence extends beyond a single terminal, forcing other ports and operators to look for ways to speed up the connection between China and Peru — something long considered uneconomical given the relatively modest size of the Peruvian market.

 

The ports of Callao and Chancay lie just 50 miles apart, only a few hours away by truck, and both sit close to Lima.

 


 

MSC’s strategy and the bet on Peruvian exports

 

“MSC decided it was time to create a direct service from Asia,” said Gonzalo Santillana, Managing Director of MSC in Peru, noting that the company has deployed 14 vessels for the new loop.

 

“We are confident the market will respond accordingly; we’re seeing a lot of enthusiasm and fully booked ships,” he added.

 

At present, MSC’s vessels discharge imports at Callao and then sail on to Chile to load cherries for the Asian market during the harvest season.

 

Santillana hopes that once cherry season ends, MSC will be able to launch a direct export leg from Callao, better serving Peruvian exporters — especially fruit producers, who stand to benefit from the longer shelf life made possible by shorter transit times.

 


 

Peru’s emergence as a South American logistics hub

 

Fauché believes these developments mark the start of a structural shift:

 

“This is the beginning of something that cannot be stopped. Peru is going to become a logistics hub for South America, and we’ll see many more direct services to Asia.”

 

The expansion of direct China–Peru connections not only strengthens Peru’s role in regional logistics, but also reinforces its position as a key supplier of raw materials and agricultural products to Asian markets.

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