Burden on Shippers tighten as Carriers impose more surcharges
Container rates across several trade-lanes are skyrocketing. The burden on ocean freight shippers won’t be easing until coming year. Several shippers say, they are already paying higher rates to carriers for prompt container availability and to guarantee shipment.
Recent figures of Shanghai Containerized Freight Index (SCFI) have doubled since May’20. Many trade-lane components have recorded spot rates gains more than 100%.
Last week, there was 9% increase in the SCFI for rates from Asia to North Europe. Carriers are now gearing up for next round of FAK rate increase, for this month and next.
CMA CGM has upped its minimum FAK rate for North Europe to $2,650 per 40ft HC, w.e.f 7 November. Hapag-Lloyd has upped its 40ft HC base rate, including fuel surcharge for North Europe (excluding the UK), to $3,020. Moreover, UK shippers have to pay extra $300 per box as port congestion surcharge.
Rates for Mediterranean ports, as per SCFI, edged up by just under 3%. There’s an 88% surge recorded in spot index for Asia to South Africa, and a massive 291% leap in rates to the east coast of South America.
Recently, Hapag-Lloyd announced a peak season surcharge of $1,000 per 40ft between China & other intra-Asia ports.
On the transpacific trade-lane, the SCFI recorded a modest $22 increase per 40ft for spot rates to the USWC. For USEC ports, there was a $24 increase per 40ft.
However, import volumes for the port of Los Angeles show substantial year-on-year increase in November. There is no sign of slowdown in demand, as rates continue to hold steady.