The $3,000 "Red Sea surcharge" will be implemented immediately! Several shipping companies have issued price increase notices ......

Affected by the Red Sea crisis, global shipping giants have chosen to stop or reroute, at the same time, including CMA-CGM, Maersk, Hapag-Lloyd, etc., a number of container liner companies, including one after another issued a notice announcing the imposition of the Red Sea surcharges involving the European land.

Pushing up freight rates again!

CMA-CGM Imposes "Red Sea Surcharge", Maximum USD3000/Container

On the 20th, the world's third largest container liner company France CMA-CGM officially announced new charges: for round-trip Jeddah (Jeddah), Port of Neom (Port of Neom), Djibouti (Djibouti), Aden (Aden), Hodeidah (Hodeidah), Port of Sudan (Port of Sudan), Massawa (Massawa), The following Red Sea Charge will be applied to all types of cargoes in Berbera, Aqaba, Sohna:

It is up to USD 3,000 per container!

At the same time, CMA-CGM announced that the above Red Sea Charge will be effective from December 20, 2023 and will be valid for all cargoes loaded or to be loaded/unloaded at the port of embarkation.

At the same time of announcing the Red Sea Charge, CMA-CGM also announced an emergency surcharge for emergency detours to the Cape of Good Hope: the "Cape of Good Hope Surcharge" (Contingency Charge), which is also effective immediately.

CMA-CGM said, "In order to ensure the safety of the crew, vessel and cargo, several of CMA-CGM's vessels have changed their original routes around the Cape of Good Hope in Africa. As announced earlier, the contingency plan is being carried out in accordance with clause 10 of our bill of lading and will therefore incur additional costs."

"The Cape of Good Hope surcharge (contingency charge) is effective from the date of publication (December 20) until further notice."

In addition, CMA-CGM 20 announced a Peak Season Surcharge (PSS) of US$500/TEU and US$1,000/FEU for cargoes on the Asia-Mediterranean and North Africa routes from January 1, 2024 (loading date at the port of origin).

Red Sea surcharges for Europe-related destinations charged by many shipping lines

Maersk

Maersk has imposed a congestion surcharge at destination (CFD) on cargoes destined for Yemen, the company said in an announcement on the 19th.

Maersk said the congestion surcharge (CFD) for all dry containers worldwide (excluding Vietnam and other regulated countries) to Yemen is $250/TEU, $500/FEU, effective from 20/12/23.

CFDs are effective January 4, 2024 for Vietnam and January 19, 2024 for other regulated countries.

Hapag-Lloyd

Hapag-Lloyd issued a notice on 20 January, announcing the imposition of a Peak Season Surcharge (PSS) of USD 500/TEU on routes from the Far East to Northern Europe and the Mediterranean, effective January 1, 2024, until further notice.

ONE

ONE19 said it will introduce an emergency peak season surcharge (PSS) of US$500/TEU on westbound Asia-Europe routes from January 1, "in light of continued strong demand ...... to maintain slot availability, equipment supply and product service levels" .

Suez Canal Gates 'Paralyzed', Over 142 Containers Stranded or Forced to Reroute

Since mid-November, the Houthis have been attacking "Israeli-related vessels" in the Red Sea. At least 13 container liner companies have announced the suspension of the Red Sea and nearby waters or detour to the Cape of Good Hope. According to the latest report of the U.S. Consumer News and Business Channel, the value of the goods carried by these vessels that were transferred from the Red Sea route totaled more than 80 billion U.S. dollars.

Tracking statistics from a shipping big data platform in the industry show that as of the 19th, the number of container ships passing through the Strait of Bab al-Mandeb (the gateway to the Suez Canal, one of the world's most important shipping lanes), which is located at the junction of the Red Sea and the Gulf of Aden, dropped to zero, which suggests that the key passageway into the Suez Canal has been paralyzed.

Flexport CEO Ryan Petersen (according to the original plan, the company has about thousands of containerized cargo will be in the next few days through the Red Sea) in the United States local time on Tuesday (19th) morning publicized a set of data shows that there have been as many as 142 container ships by the Red Sea stoppage of the serious impact.

Among them, 75 container ships have been stranded because of the Red Sea shutdown, waiting for further instructions from the shipping company; another 67 container ships have been forced to embark on a trip around the Cape of Good Hope in Africa.

Logistics company DXN expects more vessels to join the detour route in the future.

Maersk's Chief Executive Officer, Vincent Cole, said that "Europe is more dependent on the Suez Canal" and that delays in arrivals could be as long as two to four weeks. Asia could be affected by a shortage of empty containers, which could be delayed by 10 to 20 days to areas in need, said Monteleone.

With the shipping companies to cope with the plans and strategies of the landing, the potential impact includes: delayed delivery period, the additional cost of detouring to push up freight rates, fuel consumption and related costs increase, the reduction of available capacity triggered by the increase in freight rates, route adjustments to exacerbate the disruption of the operation of ports and terminals, the voyage time to disrupt the allocation of empty containers to cause a shortage of boxes in the port of embarkation, disruption to the shipping schedule and the ship is forced to reroute, and so on.

Influenced by the turbulent situation in the Red Sea, the SCFI index recently hit a 12-month high, available capacity will be further reduced in the short term, and spot rates will continue to rise in the coming weeks, and this momentum is expected to continue until the end of January.