Intensive price increases! Almost all routes in all directions are bursting at the seams!
Several shipping companies have recently announced a new round of rate adjustments for November. CMA CGM, HMM, ZIM, Maersk, Hapag-Lloyd, and others have successively adjusted rates on certain routes, including those to Europe, the Mediterranean, the Indian Subcontinent, and Africa.
CMA CGM Adjusts FAK Rates from Asia to the Mediterranean and North Africa
CMA CGM issued a notice stating that starting from November 1, 2024 (based on the loading date) until further notice, new FAK rates will apply from Asia to the Mediterranean and North Africa. The details are as follows:
HMM Adjusts FAK Rates from Asia to Europe
HMM issued a notice announcing new FAK rates from Asia to Europe, effective from November 1, 2024, until further notice. This adjustment is aimed at maintaining reliable and high-quality service. The details are as follows:
ZIM Imposes Peak Season Surcharge from the Far East to Europe and the Mediterranean
ZIM has issued a notice stating that due to current market conditions, it is updating its Peak Season Surcharge (PSS) for shipments from the Far East to the Eastern and Western Mediterranean, including Black Sea ports and Northern Europe. This surcharge will be effective from November 1, 2024, until further notice. The details are as follows:
Multi-directional route overbooked
“Almost all routes have been overbooked for late October sailings.” According to media reports, it has been widely observed that nearly all routes experienced overbooking by the end of October, with some routes extending overbooking issues into November.
For the U.S. routes, the West Coast and East Coast lines were mostly fully booked by the end of October, with a few available schedules still open with some carriers. Due to the rush of e-commerce shipments for Black Friday and Christmas, this situation is expected to continue until mid-November. Prices are generally stable until the end of the month, but an increase is expected at the beginning of next month. MSC has already announced a $300 per FEU price hike. Analysts attribute the overbooking to factors such as customers rushing shipments due to tariff policies related to the U.S. elections, the early timing of Chinese New Year, unresolved automation issues at U.S. ports, and the risk of potential strikes.
For the European and Mediterranean routes, most vessels were overbooked by the end of October after shipping lines announced price increases for November. Bookings are performing well. In East China, due to cancellations and delays in the first week of November, it is estimated that capacity for European routes will be down by about 28%. Additionally, severe cancellations in the Eastern Mediterranean make a price increase highly likely in early November, while the Western Mediterranean remains relatively weak. Carriers are also planning further General Rate Increases (GRI), but much depends on market conditions.
For the India and Red Sea routes, prices are set to increase by the end of the month, especially with overbookings and rate hikes on India-Pakistan routes. Freight rates in the Middle East and Red Sea are following the upward trend. Although rates for weeks 44 and 45 have not yet been released, space is already very tight, and some customers, fearing further price increases, have booked shipments in advance.
In South America, overbooking was also reported at the end of October due to high demand driven by Christmas and New Year shipments, affecting both the East and West coasts of South America. Freight rates are expected to rise in November.
In Southeast Asia, the market is experiencing general overbooking and price increases, with some rates rising sharply. By the end of the month, most carriers no longer have available space, and some routes are overbooked into the first week of November. Currently, only the second week of November has available capacity, and rates may continue to rise.
Recently, shipping companies have restarted their pricing strategies to stabilize and support rates, but it remains to be seen whether these announced rate hikes will materialize in the market.
