Major shipping lines are moderating their rating strategy amid the Covid-19 pandemic, which has caused serious reductions in market demand. Given that the key to mitigating carrier 2020 losses is maintaining freight rate levels, top carriers have decided to push up charges for the next months.
Maersk Line, the largest shipping company, has increased rates from Pakistan, United Arab Emirates and Indian sub-continent to North America, as follows:
|Origins||Destinations||Cargo Type||20DC / 40DC||40High / 45HDry||Effective date|
Pakistan, UAE and Indian sub-continent
United States and Canada
DRY / REEF
US$200 / US$200
US$200 / US$200
1 July 2020
The second largest container shipping company, MSC (Mediterranean Shipping Company), has announced new freight rates from Italy to the United States from 2 July until further notice but not beyond 31 July.
All Prices are in US$ unless otherwise specified.
The above rates are subject to:
- PCS (Panama Canal Surcharge) when applicable: US$260/ container
- PCE (Panama Canal Emergency Surcharge) when applicable: US$15/ container
- CSF (Carrier Security Fee): US$11/ container
Furthermore, French operator CMA CGM has unveiled several new charges across the world.
The Marseille-based carrier will apply a new general rate restoration (GRR) from 15 June from Asia including China, Taiwan, South Korea, South East Asia, East Coast of India, Bangladesh and Sri Lanka, but excluding Japan, to Kenya, Tanzania, Mozambique and all South African ports.
The line will apply a US$200/TEU specific GRR to all cargo dry, reefer, out of gauge (OOG) and breakbulk cargo.
In addition, CMA CGM will extend “all-in” rates from North Europe to Asia in July by simultaneously increasing freight of all kinds (FAK) base ocean freight by US$200/ container and reducing the peak season surcharge (PSS) by US$200/ container as well.
As a consequence, the company’s FAK rates will be as follows:
- Origin range: North European base ports (direct on CMA CGM services)
- Destination range: China and North & South Asia base ports (direct on CMA CGM services)
- Cargo: Dry
- Date of application: 1 July 2020 (date of loading in the origin ports) until further notice but not beyond 31 August 2020
- Amounts: US$1,450 per 20’ST | US$1,750 per 40’ST | US$1,750 per 40’HC (High Cube)
And PSS will be as follows:
- Origin range: North European ports
- Destination range: China and North & South Asia ports
- Cargo: Dry only
- Contracts: Short-term only
- Amounts: US$100 per 20′ | US$100 per 40′
Please find the revised PSS rates applicable as from 15 June (date of loading in the origin ports) until further notice.
The French carrier will also revise its PSS from France (Mediterranean ports) and Spain to Far East for dry and HC cargo from 15 June to US$100 per 20′ dry, US$200 per 40′ dry and US$200 per 40′ HC.
Another top-five shipping company has unveiled fresh prices from North Europe to Far East Asia, including Japan. Hapag-Lloyd will increase ocean tariff rate for all cargoes in 20’ and 40’ (incl. High Cube) containers on the Eastbound trade from North Europe to Far East from 1 July, as follows:
Moreover, the German firm has published a new general rate increase from North East Asia (Korea, China, China/Hong Kong, China/Macau and China/Taiwan) to Australia as of 1 July for all dry, reefer, non-operating reefer, tank, flat rack and open-top containers as follows:
- US$300/20’ all equipment types
- US$600/40’ all equipment types