Recently, a number of shipping companies have issued notices to increase shipping rates, with an increase of up to $2,000, an increase of nearly 70% compared with the current freight rate.
According to the notice issued by COSCO SHIPPING Container Lines Co., Ltd., from April 1 to April 14 this year, the sea freight rate from the Far East (including China in eastern Asia) to the United States and Canada will rise sharply, with an increase of 1000~2000 US dollars.
At present, the average freight rate from China to the United States is about 3,000 US dollars, an increase of nearly 70%. It is not only COSCO Shipping (COSCO) that has announced price increases, but also many shipping companies such as Mediterranean Shipping Company (MSC), Hapag-Lloyd, Wanhai, and Hyundai Merchant Marine (HMM), involving not only the United States and Canada, but also Latin America, Europe (Europe, the Mediterranean and the Black Sea), and offshore routes.
However, the reporter asked a number of freight forwarding companies, and the feedback was that although the shipping company issued a price increase notice, the actual price did not really rise.
01
Shipowners announced price increases, but the market did not buy them
"In the past few days, we have indeed seen the announcement of price increases from several major shipping companies, and also issued a notice of the increase in US sea freight to customers, suggesting that customers stock up in advance. The person in charge of a freight forwarding company in Shenzhen told reporters.
Specifically, on March 18, the shipping company Hapag-Lloyd issued an announcement announcing that from April 1, 2024, it will increase the freight rates from Asia (excluding Japan) to the west coast of Latin America, Mexico, the Caribbean, Central America and the east coast of Latin America, with the increase of small and large containers reaching $700 and $900 respectively.
Around the same time, Maersk also issued an announcement announcing the introduction of a Peak Season Surcharge (PSS) for dry containers on the East Coast of the Far East-South America from March 15 to March 31, 2024, at a rate of $160 for small containers and $200 for large containers.
In addition, COSCO SHIPPING Container Lines Co., Ltd. issued a price increase notice, from April 1 to April 14 this year, the sea freight rate from the Far East (including China in eastern Asia) to the United States and Canada will increase significantly, an increase of 1,000 to 2,000 US dollars.
There are also many shipping companies such as Mediterranean Shipping Company (MSC), Wanhai, and Hyundai Merchant Marine (HMM) have also announced price increases, involving not only the United States and Canada, but also Latin America, Europe (Europe, the Mediterranean and the Black Sea), offshore and other routes.
However, the announcement of price increases by shipping companies does not seem to have received a response from the market. The reporter learned from a number of freight forwarding companies that up to now, the real market price of shipping has not risen significantly.
"There is no obvious feeling of the increase in shipping prices, because shipping companies need to report and notify the FMC (Federal Maritime Commission) one month in advance if they want to increase prices, but they have not actually implemented it. Wang Youjian, a special researcher at the Network Economic Society, told reporters that because April is the signing season of the American route, the shipping company will directly sign a contract or a long-term contract with a large cargo owner, and the recent price will become the vane of the long-term negotiation, because the spot price has a very large guiding effect on the contract price, therefore, in his opinion, the shipping company announced a price increase at this time, and the probability is a strategic price increase, to increase the bargaining chip for the negotiation with the enterprise, but the final pricing is the result of the game between the shipper and the shipping company.
02
CMA CGM has once again raised the FAK rate from Asia to Northern Europe
On April 5, CMA CGM's official website issued the latest announcement that from April 15 (loading date), the new FAK rate from Asia to Northern Europe will be raised again, $2,200 per 20-foot container, and $4,000 for 40-foot containers including high cube containers and reefers, until further notice:
Port of Origin: From all Asian ports (including Japan, Southeast Asia, and Bangladesh)
Port of destination: to all Nordic ports (including the UK and the full range from Portugal to Finland/Estonia)
Box type: dry container, OOG, paid empty container & refrigerator
Implementation date: From April 15, 2024 (loading date at the port of origin) until further notice
03
CMA CGM has once again raised the FAK rate from Asia to the Mediterranean
At the same time, CMA CGM issued a notice on April 4 that it will adjust the new FAK rates from Asia to the Western Mediterranean, Adriatic, Eastern Mediterranean, Black Sea and North Africa (Algeria, Tunisia, Libya, Morocco) from April 15 to 30, 2024 (loading date at the port of origin) until further notice.
Note that the French shipping giant announced that the contingency fee of $500 per TEU also applies.
The new FAK rates apply under the following conditions:
Port of Origin: From all major Asian ports
Port of destination: to all basic ports in the Mediterranean (above areas)
Box type: dry containers, OOG and paid empty containers
Implementation date: April 15 to 30, 2024 (loading date at the port of origin) until further notice
04
MSC raises FAK rates from Asia to the Mediterranean
MSC announced on April 3 that it will increase the FAK rate from all Asian ports (including Japan, South Korea and Southeast Asia) to the Mediterranean/Adriatic/Black Sea from April 15, 2024 until further notice. $4,800/FEU for the Western Mediterranean and $5,100/FEU for the Black Sea.
05
Hapag-Lloyd has again raised its FAK rates from the Far East to Europe
German shipping giant Hapag-Lloyd announced on April 4 that from April 15, 2024, it will increase the FAK rate between the Far East and Northern Europe and the Mediterranean, involving 20-foot and 40-foot dry container transportation, including high cube and reefer containers. The rate adjustment takes into account the cost of marine fuel recovery (MFR) and is subject to relevant tariff rules and surcharges.
Shipping giants announced price increases in the traditional off-season, reflecting the market's focus on the recovery of foreign trade and changes in the maritime market.
Despite the expectation of price increases, the upward trend of actual transaction prices still needs to be further verified by the relationship between market supply and demand and capacity control.
The global economic recovery and the arrival of the U.S. replenishment cycle may herald an earlier peak season in the ocean freight market, but the specific situation remains to be seen. Shipping giants have risen prices in the off-season, and the global economy has ushered in recovery?