Global Shipping Lines Announce Rate Hikes and Surcharges for December 2024
As the peak shipping season approaches, major shipping lines have announced a series of rate increases and surcharges effective December 2024, impacting trade across Asia, Europe, Oceania, and North America. Here’s a detailed breakdown of the latest updates:
Maersk’s Rate Increases and Seasonal Surcharges
- Asia to Rotterdam Rates:
Starting in December, Maersk will raise freight rates for shipments from Asia to Rotterdam to $3,900 for 20-foot containers and $6,000 for 40-foot containers, marking increases of $750 and $1,500, respectively, compared to previous rates. - Peak Season Surcharges (PSS):
Maersk will implement PSS for shipments from the Far East to Australia, Papua New Guinea, and the Solomon Islands, beginning December 1, 2024. - Adjustments to PSS:
Additional adjustments will apply to shipments from China, Hong Kong, Japan, South Korea, and Mongolia to New Zealand, Fiji, and French Polynesia, also effective December 1, 2024.
Hapag-Lloyd’s FAK Rate Increase
Hapag-Lloyd has announced an increase in Freight All Kinds (FAK) rates for cargo moving between the Far East and Europe. The hike applies to 20-foot, 40-foot, and reefer containers, including high cube containers, and will come into effect on December 1, 2024.
CMA CGM’s Rate Restoration Initiative (RRI)
CMA CGM plans to implement an RRI for shipments from the West Coast of Canada to China, Hong Kong, Macau, Northeast Asia, and Southeast Asia starting December 1, 2024.
- Charges:
- $50 per 20-foot container
- $100 per 40-foot and 45-foot container
- Applicable only to dry cargo (excludes open-top, flat-rack, and tank containers).
MSC’s Congestion Surcharge (CGS)
Due to ongoing port congestion caused by labor strikes in Canada, MSC will introduce a CGS for exports to Canada, effective November 25, 2024, until further notice.
- Charges:
- $400 per 20-foot dry container
- $600 per 40-foot dry container
- $1,000 per reefer and special equipment container
- Affected routes include shipments from Northern Europe, the Baltic, the Western Mediterranean, the Adriatic, and Israel to Canada.
Industry-Wide Impact
These rate adjustments and surcharges are responses to a combination of factors:
- Rising operational costs amid peak season demand.
- Ongoing congestion at Canadian ports due to labor disputes, causing delays and capacity constraints.
- Increased focus on maintaining service continuity across key trade lanes.
Advice for Shippers
To mitigate the impact of these changes, businesses are advised to:
- Plan Ahead: Book shipments early to secure capacity and avoid additional fees.
- Optimize Routes: Explore alternative ports or routes to minimize costs and delays.
- Stay Informed: Monitor updates from carriers and port authorities for real-time changes in rates and surcharges.
As global trade continues to adapt to dynamic market conditions, shippers and logistics providers must navigate these changes carefully to ensure smooth operations during this critical period.
