Up 173%! The situation in the Red Sea continues, and freight rates on the European line are soaring
Spot rates for container shipments between Asia, Europe and the US are rising as the Red Sea crisis has forced several shipping companies to divert and reduced global cargo capacity.
According to Freightos, a shipping booking and payment platform, spot freight rates for 40-foot container shipments from Asia to northern Europe have topped $4,000, up 173% from the middle of last month before the Red Sea crisis.
Freightos head of research Judah Levine noted that the cost of shipping from Asia to Northern Europe and the Mediterranean is more than double the level of January 2019, but still well below the peak seen during the coronavirus pandemic.
Recently, CMA CGM announced the price increase plan from Asia to Northern Europe in mid-January.
According to the latest announcement of CMA CGM, a new FAK rate will be imposed from Asia to Northern Europe from January 15, 2024 (date of loading). $3,200 per 20-foot box and $6,000 per 40-foot box until further notice.
In addition, according to a notice from CMA CGM on December 29, from January 1, 2024 until further notice, reefers from Asia to Northern Europe will also be subject to a peak season surcharge of PSS of $500 per 20 feet and $1,000 per 40 feet.
In the Mediterranean route, CMA CGM has also significantly increased freight rates from Asia to the Mediterranean region. For more details, please see the previous push "Starting from January 15, CMA Westland freight doubled". In the face of the complex and changing situation of the Red Sea and the rising freight rates, for freight forwarders and cargo owners, a sharp rise in freight rates in the short term has been inevitable.
At the same time, the extension of the shipment schedule, booking difficulties, delivery delays and other conditions will also become a problem plaguing the shipper. Freight forwarders must make plans in advance for recent shipments and pay timely attention to the situation of the Red Sea and the dynamics of the ship.
