Shipping rates going crazy! Major companies announced continued increases starting May

Recently, major shipping companies have announced a new round of tariff adjustment plans. Since May, shipping companies including MSC, Maersk, CMA, COSCO Shipping, Hapag-Lloyd, HMM, etc. will continue to adjust rates involving Europe, Mediterranean and North America.

If the major shipping companies in May successfully implement a comprehensive rate surcharge (GRI) price increase program, according to the current level of freight rates for projection, is expected to the U.S. West Route tariff increase will reach at least 30%, while the U.S. East Route increase will also be more than 23%. Industry analysts pointed out that although the GRI price increases may not be fully realized, but this undoubtedly shows that the shipping industry has the bottom of the price increases, and is unwilling to accept the status quo of low freight rates. This trend signals a new round of freight rates are expected to be strongly supported.

MSC adjusts Far East to North Europe FAK rates

MSC Mediterranean Shipping recently issued a notice that since May 1, 2024, but no later than May 14, will be all Asian ports (including Japan, South Korea and Southeast Asia) to the implementation of the new FAK rates to Northern Europe. The specific notification is as follows:

Maersk increases Far East to Mediterranean, Northern Europe FAK rates

Maersk has issued a notice announcing that it will increase FAK rates from the Far East to the Mediterranean and Northern Europe effective April 29, 2024. The details of the notice are as follows:

CMA adjusts FAK rates from Asia to Northern Europe

An announcement on CMA’s website on 15 May 2024 said that the new FAK rates will be implemented from May 1, 2024 (loading date) until further notice. USD2,200 per 20ft dry box and USD4,000 per 40ft dry/high/reefer container. Specific notifications are as follows:

Port of origin: from all Asian ports (including Japan, Southeast Asia and Bangladesh)

Destination port: to all Northern European ports (including UK and the whole range from Portugal to Finland/Estonia)

Container types: Dry, OOG, Paid Empty & Reefer

Implementation date: April 15, 2024 (loading date at port of origin) until further notice

Hapag-Lloyd Adjusts Far East to Northern Europe and Mediterranean FAK Rates

Hapag-Lloyd announced on May 17, 2024 that it will adjust FAK rates between Far East and Northern Europe and Mediterranean Sea, involving 20ft and 40ft dry containers, including tall containers and reefer containers. The rate adjustment takes into account the Marine Fuel Recovery (MFR) costs and is subject to relevant tariff rules and surcharges.

The specific notice is as follows:

COSCO Shipping announced to increase GRI for U.S. lines

A few days ago, COSCO Shipping Container Lines released a notice on its official website that it will increase the GRI of US line (US and Canada) from May 15, 2024 onwards.

USA: Starting from May 15, 2024, according to the rates and service contracts, all the countries from the Far East, Indian Subcontinent countries, Middle East countries and Oceania countries including: Australia, Bahrain, Bangladesh, Brunei, Myanmar, Cambodia, China, India, Indonesia, Japan, Jordan, Korea, Kuwait, Hong Kong, China, Macau, China, Malaysia, New Zealand, Pakistan, Philippines, Saudi Arabia, Singapore, Sri Lanka, Qatar, Taiwan, China, Thailand, Vietnam, Yemen to US/all US destinations GRI as follows:

Per 20-foot container: $1,600
Per 40-foot container: $2,000
Per 40-foot tall container: $2,250
Per 45-foot container: $2,532

The above fees apply:

For all shipments arriving at U.S. West Coast ports via all-water transportation and intermodal shipments to California, Oregon, and Washington via those ports.

For all intermodal shipments and landbridge intermodal shipments arriving at U.S. West Coast ports and Canadian ports to destinations outside of California, Oregon and Washington.

For all cargo arriving at U.S. East Coast and Gulf of Mexico ports via all-water transportation and for all intermodal cargo moving through those ports.

Specific notices are as follows:

Canada: For Far East to Vancouver/Prince Rupert and intermodal cargo via Vancouver/Prince Rupert, and for all waterborne cargo on the East Coast and intermodal cargo via the East Coast, the GRI will be increased as follows:

Per 20-foot container: $1,800
Per 40-foot container: $2,000
Per 40-foot tall container: $2,250
Per 45-foot container: $2,532

Specific notifications are as follows:

HMM increases GRIs from Asia to North America, Mexico

HMM has posted a notice on its website stating that it will implement a new GRI for all originating services to the U.S., Canada and Mexico effective May 15, 2024, with the following fees:

New fuel charges levied by ZIM

A notice has been posted on the official website of ZIM, to implement the updated New Bunker Factor (NBF) levels from May 1, 2024 until further notice for FAK (All Kinds of Freight) cargoes, with a rate of US$718/TEU for Far East to Mediterranean/Black Sea and Europe. approximately three times the rate of any of its other carriers.