Recently, due to the impact of the Red Sea crisis, there is currently insufficient market capacity, and the effect of detours has become increasingly evident. Coupled with the strategic regulation of shipping companies, the overall shipping space was rather tight in May, and container freight rates climbed once again. Just recently, Maersk and CMA CGM announced that they would continue to raise their FAK (Freight All Kinds) rates, which will come into effect starting from June 1st!
Among them, Maersk’s rate for each 40-foot container will be as high as $5,900, while CMA CGM will raise its rate by another $1,000 on the basis of the rate on the 15th, reaching $6,000 for each 40-foot container.
Maersk has issued a notice that starting from June 3rd, it will increase the FAK rates from Asian base ports to Rotterdam, Gdansk, Felixstowe, Aarhus, Gothenburg, and Oslo in Northern Europe. In addition, starting from June 1st, Maersk will levy a peak season surcharge for the East Coast of South America – $2,000 will be levied for each 40-foot container.
CMA CGM has announced on its official website that starting from June 1st, it will adjust the new FAK rates from Asia to Northern Europe, which will be as high as $6,000 per FEU (Forty-foot Equivalent Unit).
Drewry, a well-known British shipping consultancy, also predicts that due to the huge surge in demand and tight capacity, freight rates in China will continue to rise in the coming week.
COSCO Shipping Holdings has publicly stated that the company’s current production and operation are all normal, and both the European and American export directions are fully loaded.
Meanwhile, the latest market report released by Kuehne + Nagel, the world’s largest ocean freight forwarder, points out that the overall shipping space situation on the European route was rather tight in May. It is expected that freight rates will continue to rise in the next two weeks. In terms of the US route, the loading rate on the US route remained in a fully loaded state during the first half of the month, especially on the US West Coast. The situation of limited low-priced shipping space and tight FAK shipping space will continue until the end of the month. There is also a potential risk as Canadian railway workers will go on strike on May 22nd.
Recently, major shipping companies have already started to release announcements about price increases in June and will continue to “raise” prices. It is expected that freight rates will still be more likely to rise than fall in the coming period. Meiou Cloud Warehouse reminds all sellers to make shipping plans in advance to avoid any impact on shipments!
