Major shipping lines have recently announced upcoming freight rate adjustments, set to take effect in November 2024. These increases will impact trade routes from Asia to Europe, South America, and Africa, raising concerns for importers and exporters alike. Here’s a breakdown of the key updates:
Maersk’s Rate Increase
On October 10, Maersk revealed that it will raise FAK (Freight All Kinds) rates for shipments from the Far East to Northern Europe and the Mediterranean, with prices climbing up to $5,700 USD. This new rate structure is set to begin on November 4, 2024.
Hapag-Lloyd Adjustments
Following suit, on October 11, Hapag-Lloyd announced its own FAK rate increase, which will also reach a maximum of $5,700 USD for shipments from the Far East to Europe, effective November 1, 2024.
In addition, Hapag-Lloyd plans to adjust rates for trade routes from Asia to the West Coast of South America, Mexico, Central America, and the Caribbean. This General Rate Increase (GRI) will be $2,000 USD and will take effect on November 1, 2024. Furthermore, Hapag-Lloyd will introduce a Peak Season Surcharge (PSS) of $1,000 USD per TEU for shipments from Asia to Mombasa, Kenya, and Dar es Salaam, Tanzania, starting October 24, 2024.
CMA CGM Rate Changes
CMA CGM also joined the rate adjustment announcements on October 10, stating that starting November 1, 2024, it will revise its FAK rates for all shipments from Asian ports to Europe. The maximum rate will be $4,400 USD. This is a significant change that will affect many European-bound shipments.
Wan Hai Lines Increase
Wan Hai Lines, known for its intra-Asia routes, has released a notice about upcoming rate adjustments. Beginning in November 2024, rates for exports from China to other parts of Asia will increase. The specific hikes are as follows:
- $50 USD for 20-foot containers
- $100 USD for 40-foot and high-cube containers
What Does This Mean for Shippers?
These increases are likely driven by several factors, including rising operational costs, peak season demand, and global supply chain pressures. For businesses shipping from Asia, it’s crucial to consider these changes when planning for the coming months.
Key Takeaways:
- Plan ahead for shipments, especially for orders going to Europe, South America, and Africa.
- Consider locking in rates before the November adjustments to avoid higher costs.
- Stay informed about potential further increases as we move into 2024’s peak shipping season.
At Zcyt Logistics, we help our clients navigate these fluctuations by providing expert advice on freight rate management and shipping strategy. Contact us today to discuss how we can help you optimize your supply chain and stay ahead of these changes!