Doubled in a week, up to $3,000!

 

The surge in May was a bit fierce.

 

Around May Day, peak season surcharges and price increase notices from major shipping companies including MSC, Maersk, CMA CGM, Hapag-Lloyd, etc. were scattered across the market like snowflakes!

 

In the notice of peak season surcharge increase for flights from mainland China and Hong Kong to central West Africa, the frequency of price increase is once a week, and the magnitude of the price increase is as high as USD3000/40' in 8 days, which is shocking!

The detour around the Cape of Good Hope absorbed a "considerable number" of containers, and a considerable number of containers were also stranded there.Container shortage,Although inventory levels have not put significant pressure on warehouses,But container prices are "continuously climbing, with adjustments approximately every 48 hours".This was mainly due to the uncertainties associated with the Red Sea situation and the desire of suppliers and sellers to hedge their risks.

 

CMA CGM and MSC boost freight rates in Europe and the Mediterranean

Recently, CMA CGM issued an announcement, announcing that from May 15, 2024, the FAK price on the Asia to Northern Europe route will be increased.

The new FAK rates are raised to USD 2,700 for small containers and USD 5,000 for large containers.

 

CMA CGM increases FAK rates between Asia-Mediterranean and North Africa

 

On April 30, CMA CGM issued a notice that from May 15 to 31, 2024 (loading date at the departure port), new FAK rates will be adjusted from Asia to the Western Mediterranean, Adriatic Sea, Eastern Mediterranean, Black Sea and North Africa (Algeria, Tunisia, Libya, Morocco), reaching USD 6,300/FEU in the Eastern Mediterranean and USD 7,800/FEU in North Africa. Compared with the previously adjusted freight rates from May 1 to May 14, small containers will increase by USD 400-500 and large containers by USD 800-1,000.

 

MSC adjusts Far East-Northern Europe FAK rates

 

MSC Mediterranean Shipping Company announced that starting from May 1, 2024, but no later than May 14, new FAK rates will be imposed from all Asian ports (including Japan, South Korea and Southeast Asia) to Northern Europe.

  

Hapag-Lloyd raises Far East-Europe FAK rates

Recently, Hapag-Lloyd announced that it will increase the FAK rates between the Far East and Northern Europe and the Mediterranean from May 15, 2024, involving 20-foot and 40-foot dry container transportation, including high cabinets and refrigerated containers. It is worth noting that compared with the previously announced price adjustment, the price of 20-foot dry containers has increased by US$550, and the price of 40-foot dry containers, including high cabinets and refrigerated containers, has increased by US$1,100.

 

Crazy "peak season surcharge" PSS

 

Maersk imposes PSS on Far East-South America route

On April 30, Maersk issued a notice stating that from May 1 to May 31, 2024, a peak season surcharge (PSS) will be imposed on all dry containers shipped from the Far East (excluding Taiwan, China) to the east coast of South America. The charging standard isSmall cabinet is US$1,000, large cabinet is US$2,000；

A peak season surcharge for cargo shipped from Taiwan to the east coast of South America took effect on May 24.

 

Maersk imposes PSS on Far East-South America West route

On April 30, Maersk issued a notice stating that from May 1, 2024, a peak season surcharge (PSS) will be imposed on all dry containers shipped from the Far East (excluding Vietnam and Taiwan) to the west coast of South America, Central America and the Caribbean. The charging standard isSmall cabinet is US$1,000, large cabinet is US$2,000；

The peak season surcharge for cargo shipped from Taiwan, China will take effect from June 1.

 

Maersk imposes Saudi Arabia peak season surcharge

On April 26, Maersk’s official website announced that it will increase the peak season surcharge (PSS) from Brunei, China, Hong Kong, Indonesia, Japan, Cambodia, Laos, South Korea, Myanmar, Malaysia, the Philippines, Singapore, Thailand, and Timor-Leste to Saudi Arabia, effective from May 1, 2024.20-foot dry and refrigerated container USD 650, 40-foot dry and refrigerated container USD 900。

 

Maersk imposes PSS on China-West Africa North route

Maersk issued a notice stating that from May 6, 2024, a peak season surcharge (PSS) will be levied on all containers shipped from China and Hong Kong to Senegal, Guinea, Mauritania, Gambia, Liberia, Sierra Leone, Cape Verde Islands, Mali and other places. The charging standard isSmall cabinet is US$1,000, large cabinet is US$2,000；

The peak season surcharge for cargo shipped from Taiwan, China will take effect from May 25.

 

Maersk imposes PSS on China-West Africa Central route

Recently, Maersk issued a notice stating that from May 6, 2024, a peak season surcharge (PSS) will be levied on all containers shipped from China and Hong Kong to Nigeria, Ghana, Côte d’Ivoire, Benin, Togo, Niger, Burkina Faso and other places. The charging standard isSmall cabinet is US$500, large cabinet is US$1000；

The peak season surcharge for cargo shipped from Taiwan, China will take effect from May 25.

 

Maersk imposes PSS on China-South West Africa route

 

Recently, Maersk issued a notice stating that from May 6, 2024, a peak season surcharge (PSS) will be levied on all containers shipped from China and Hong Kong to Angola, Cameroon, Congo, Democratic Republic of the Congo, Equatorial Guinea, Gabon, Namibia, Central Africa, Chad and other places. The charging standard isSmall cabinet is US$1,000, large cabinet is US$2,000；

The peak season surcharge for cargo shipped from Taiwan, China will take effect from June 6.

 

Maersk imposes PSS on China-Kenya route

 

Recently, Maersk issued a notice stating that from May 6, 2024, the peak season surcharge (PSS) for shipments from China to Kenya will be increased. The new charging standard isA small cabinet costs $750 and a large cabinet costs $1,500.

 

Maersk collects China-Dar es Salaam PSS

Recently, Maersk issued a notice stating that from May 6, 2024, the peak season surcharge (PSS) for shipping from China to Dar es Salaam will be increased. The new charging standard isA small cabinet costs $400 and a large cabinet costs $800.

 

Maersk imposes PSS on South Africa routes

On April 30, Maersk issued a notice stating that from May 24 to June 24, 2024, a peak season surcharge (PSS) will be levied on all containers shipped from China, Hong Kong, Indonesia, Japan, South Korea, South Korea, Mongolia, Macau, Malaysia, the Philippines, Singapore to Mauritius and South Africa. The charging standard isA small cabinet costs $300 and a large cabinet costs $600.

The peak season surcharge for cargo shipped from Taiwan, China will take effect from June 6.

 

HMM levies Asia-North America GRI

 

Recently, HMM announced that from June 1, 2024, HMM will implement the new GRI for services from all origins to the United States, Canada and Mexico.

 

Hapag-Lloyd receives African PSS

On April 30, Hapag-Lloyd’s official website announced that starting from May 16, 2024, a Peak Season Surcharge (PSS) will be levied in many locations in Africa, with fees ranging from US$250 to US$600.
Asia to Northwest Africa: US$600/TEU Asia to Mombasa (Kenya): US$250/TEU Asia to Dar es Salaam (Tanzania): US$450/TEU Asia to West Africa: US$500/TEU Asia to Southwest Africa: US$500/TEU

 

CMA CGM collects PSS from Asia to Mauritius

On May 2, CMA CGM issued a notice stating that starting from May 15, 2024 (loading date), a peak season surcharge (PSS) will be levied from China, Southeast Asia, Northeast Asia, and the east coast of India to Mauritius.USD 300/TEU , until further notice.

 

Click here for detailsHuifeng International official account.

 

Maersk: Red Sea crisis causes loss of nearly 20% of effective shipping capacity on Europe-Europe routes

Since November last year, the Houthis have been attacking merchant ships in the Red Sea, causing more and more problems. On May 6, the Danish shipping group Maersk wrote in its latest report to customers: "The effects of the situation in the Red Sea are widening and continuing to cause industry-wide disruptions."

Maersk and many other shipping lines have halted Red Sea to Suez Canal transits since late last year due to unrest and repeated drone and missile attacks on cargo ships.
But according to Maersk, the Red Sea crisis has become more severe and complex over the past few months.

 

"The risk area has expanded and attacks are spreading further offshore," Maersk said. "This is forcing our vessels to extend their voyages further, resulting in additional time and costs for your cargo to reach its destination."

 

Maersk said the impact of the crisis included bottlenecks, vessel congestion, delays and shortages of equipment and containers.

Maersk said: “We estimate that in the second quarter, from the Far East to North Europe and the Mediterranean market,The industry will lose 15-20% of its capacity"We are doing everything we can to improve reliability, including sailing faster and adding capacity."

 

To alleviate the shortage of equipment and containers,Maersk leases an additional 125,000 containersSevere delays are plaguing Maersk, and therefore its customers. New data from Sea-Intelligence shows that in the first quarter of this year, less than half of the Danish shipping group's ships arrived at ports on time. This is a 16.1% drop compared to the fourth quarter of 2023, the data shows, which is the largest drop in ranking among the major shipping companies.

While Maersk has not invested much in new tonnage, many of its rivals have spent much of the billions of dollars they made during the pandemic buying older ships and ordering new ones, which Maersk Chief Executive Officer Vincent Clerc has repeatedly said could lead to overcapacity and put pressure on freight rates.

 

Maersk to impose new surcharges

 

In an analysis after Maersk's results were released, German investment bank Bernstein said that the behavior of container shipping companies was not rational. "In a rational industry, shipping companies would scale back expansion plans in an environment of oversupply. This is not a rational industry," Bernstein wrote. He pointed out that ONE, HMM and Hapag-Lloyd have all talked about growth plans. "We already expect the fleet size in 2025 to be 42% larger than in 2019, with demand growth of 10-15%, and adding capacity may only prolong the pain." Vincent Clerc explained that the reason is that the company has ordered few ships compared to its competitors.

 

This makes it more difficult to fill the gaps in sailing schedules caused by longer sailing times around the Suez Canal. "The situation in the Red Sea has been escalating, so we have to adjust our route network - not just in the short term, but in the long term," said Maersk's CEO. In its latest customer update, Maersk warned customers that container shipping costs will increase due to the Red Sea crisis. "YouYou will see the relevant surcharge on your latest invoice. These are intended to offset longer voyages, higher sailing speeds and additional fuel costs.” “For example, we are currently using 40% more fuel per sailing and charter rates are currently three times higher, typically for five-year charters.” As Maersk points out, Houthi attacks on international shipping have spread from the Red Sea and the entrance to the Gulf of Aden to the Indian Ocean. “On top of that, the Yemen-based group is now warning that they will intensify their attacks and may extend them into the Mediterranean.”

 

Shipping company notice: Suspend all import and export trade between these two countries!

 

Israel's largest port hit by missile attack

 

On May 5, the Shiite armed group "Iraqi Islamic Resistance Movement" issued a statement saying that it launched a missile attack on the northern Israeli port of Haifa. Haifa Port is Israel's largest port, with an annual cargo throughput of nearly 30 million tons and a container throughput of about 1.5 million TEUs.

 

Several Israeli seaports, including Haifa and Ashdod on the Mediterranean coast and Eilat on the Red Sea, have recently been attacked by the Iraqi Islamic Resistance Movement and the Houthi armed forces. The Houthi armed forces' missile attacks almost disrupted the import and export business of the Eilat port.

 

Since the Israeli-Palestinian conflict, Israeli port operations have been frequently attacked by the Houthis, and the Red Sea shipping routes have been interrupted. Houthi spokesman Yahya Saraiya said on the 3rd that the Houthis will launch attacks on ships related to Israel sailing in the Mediterranean, that is, the scope of the attack will be expanded to the Mediterranean.

 

In addition, Saraiya also said that if Israel launches an attack on the southern Gaza city of Rafah, the Houthi armed forces will continue to expand the scope of the attack and attack all ships of companies that have had transactions with Israel in the past few months in the Red Sea, Arabian Sea, Indian Ocean and Mediterranean Sea, regardless of the nationality of these ships and where the target ports are.

 

On May 5, Maersk’s official website released an announcement, announcing the suspension of all import and export trade between Türkiye and Israel, as well as the cancellation of bookings, etc.

 

Maersk said it has implemented the following restrictions, effective immediately:

Suspending all exports from Türkiye to Israel;

Suspending all imports from Israel to Türkiye;

Suspending all imports into Türkiye and transiting in Israel;

Suspend all third-country cargo related to Israel and transiting through Türkiye;

Suspend all empty containers being loaded from or to Israel.

 

Maersk said that if there are new bookings that have not yet been loaded between Israel and Turkey, or to Israel via Turkey as a transshipment hub, Maersk will need to trigger a change of destination (COD) or cancellation based on the above restrictions. Similarly, bookings that have already been transported on the water will need to return to the point of departure or unload at a nearby hub.

 

It is understood that on May 2, local time, the Turkish Ministry of Trade issued a statement announcingSuspend all import and export trade with Israel.

The statement said that after a new round of large-scale Palestinian-Israeli conflict broke out on October 7 last year, Turkey has been committed to ending the conflict through diplomatic means and has delivered humanitarian aid including food and medical supplies to the Gaza Strip. However, the humanitarian disaster caused by Israel continues, and the Israeli government has ignored international efforts to promote a ceasefire and blocked humanitarian aid.

Türkiye subsequently announced restrictions on exports of 54 categories of products to Israel, effective from April 9 this year until Israel declares a ceasefire in the Gaza Strip and allows sufficient and uninterrupted aid to enter the region.

 

Gradually recovering! Container ships finally pass through the Port of Baltimore

 

On April 27, local time, a small container ship arrived at the Port of Baltimore in the United States through a temporary waterway. This was the first cargo ship to arrive at the port since the Francis Scott Key Bridge collapsed more than a month ago.

 

On April 28, the container ship named "MSC Passion III" arrived at the WestJet Marine Terminal in the Port of Baltimore.

 

According to the social media page of the Port of Baltimore, the container ship (MSC Passion III) flying the Liberian flag has unloaded at the port, and about 80 port workers have unloaded nearly 1,000 containers. In this regard, the Port of Baltimore called this "a new milestone!"

 

In the early morning of March 26, Baltimore time, the Francis Scott Bridge collapsed after being hit by the container ship "Dalli".

 

The collapse of the bridge cut off the only shipping lane in and out of the Port of Baltimore, forcing the port to close.

 

The Port of Baltimore was established before the founding of the United States and has long been the economic pillar of Baltimore and the surrounding area. The collapse of the bridge not only affected the port itself, but also disrupted important freight channels on the East Coast.

 

After the accident, Maryland has been working to restore port operations. It has currently recovered 1,300 tons of steel bridge material on the waterway, opened four temporary waterways, and allowed the first trapped cargo ship to leave the port on April 26.

 

Beijing-Tianjin-Hebei Region: The first new direct flight to East South America!

 

On May 6, at the container terminal of Tianjin Port, as the "COSCO Shipping Argentina" ship loaded with containerized goods such as construction machinery and electrical appliances from the Beijing-Tianjin-Hebei region and other regions set sail for ports in South America such as Rio de Janeiro, Santos, Itapúa, and Navegantes, it marked the official opening of the first direct flight to the east coast of South America in the Beijing-Tianjin-Hebei region in recent years. This is the first container route to South American BRICS countries newly added by Tianjin Port this year.

 

COSCO SHIPPING has deployed 12 14,000-TEU ships to operate the new Tianjin-Eastern South America direct route on a weekly basis, which will provide a more convenient sea route for the import of soybeans, iron ore, coffee beans, cocoa, sugar, beef and other products from South America and the export of domestic daily necessities, chemicals, automobiles and parts, steel, furniture and other categories. It will also shorten the delivery time from Tianjin to Brazil from the original 54 days in transit to 40 days, and increase the refrigerated container loading capacity by 81%. It will effectively facilitate trade between northern China and South American countries and regions, and build a new international logistics channel for the vast inland hinterland enterprises to "go global".

 

To ensure the safety and efficiency of the maiden voyage of the new route, Tianjin Port Group communicated with China COSCO Shipping Group in advance, and coordinated closely with port units such as Tianjin Customs, Tianjin Maritime Safety Administration, and Tianjin Frontier Inspection Station. Based on the characteristics of the maiden voyage and production realities, they scientifically formulated operation plans, strengthened port resource coordination, and enhanced production service guarantees. They used smart ports to enable the implementation of the "Five Guarantees and Five Immediate" measures, shortened the time for ship auxiliary operations, and continuously optimized the port clearance efficiency. Not only did it set a new record in the history of the route with an operating ship efficiency of 183 natural boxes per hour, but it also provided full-chain route service guarantees to comprehensively improve the service quality of the new route.

 

This new route mainly calls at several ports in Brazil. This year marks the 50th anniversary of the establishment of diplomatic relations between China and Brazil. As the two largest developing countries and important emerging market countries in the eastern and western hemispheres, China has been Brazil's largest trading partner for 15 consecutive years, and Brazil is China's largest trading partner and direct investment destination in Latin America.

 

In recent years, China-Brazil economic and trade cooperation has been booming. As of 2023, the bilateral trade volume between China and Brazil has exceeded US$100 billion for six consecutive years. According to statistics from Tianjin Customs, in the first quarter of 2024, Tianjin Port's imports and exports to Brazil amounted to 28.82 billion yuan, an increase of 36.6%. Among them, exports amounted to 6.22 billion yuan, an increase of 5.9%; imports amounted to 22.6 billion yuan, an increase of 48.4%.

 

MSC adds Tianjin port to its important routes

 

Recently, Mediterranean Shipping Company (MSC) adjusted the ports of call of its DRAGON route, adding the Port of Tianjin, China, in order to improve the reliability of ship schedules and shorten transit time.

 

It is reported that the "MSC SONIA" is tentatively scheduled to set sail from Tianjin Xingang in May, operating the upgraded DRAGON route, and the ports of call include:Dalian, Tianjin, Busan, Shanghai, Ningbo, Yantian, Singapore, Gioia Tauro, Genoa, La Spezia, Foz, Barcelona, Valencia, Malaga.

 

Regarding the route upgrade, MSC explained that the main export categories of goods in North China currently include steel, machinery, chemicals, photovoltaic products and minerals. The upgraded route will better meet the transportation of these commodities from North China to Italy, Spain, France and other ports in the Mediterranean region, showing that the company is full of confidence in its export business in North China.

 

MSC said that it will continue to be committed to meeting the growing transportation needs of the Chinese market and providing customers with safe, efficient and high-quality intermodal transport solutions in the future.

 

Breaking news! The port and airport here are closed and logistics operations are interrupted!

 

Flooding in Brazil's Rio Grande do Sul state has killed at least 85 people, completely halted operations at three ports and halted almost all logistics operations in the state.

 

Rio Grande do Sul have completely halted operations in three ports as well as put a stop to nearly all logistical operations in the state.

 

Inchcape Shipping Services said the ports of Porto Alegre, Rio Grande and Tramandai had been completely closed. Heavy rains flooded the state capital of Alegre, with river levels rising 5 meters above normal. Alegre's Salgado International Airport was also flooded and closed.
All unloading and loading operations at the port were completely stopped and all flights were cancelled.

 

Brazilian steelmaker Gerdau suspended operations at two plants until it could ensure the safety of its employees, while logistics company Rumo suspended some operations and said it was still measuring asset losses appropriately.

On May 3, Russian petrochemical giant Braskem closed its petrochemical complex in Trienfor as a precautionary measure due to extreme weather, and has not yet made a forecast for the resumption of work at the complex. Braskem operates eight industrial plants in Rio Grande do Sul, producing 5 million tons of basic petrochemicals, polyethylene and polypropylene annually.

Since April 27, most of Rio Grande do Sul has been hit by continuous heavy rains. In some areas, rainfall exceeded 300 mm in less than a week. For example, in the municipality of Bento Gonpesálves, the volume reached 543.4 mm. Porto Alegre received 258.6 mm of rainfall in just three days. This figure, compared to the normal rainfall in April and May, is equivalent to more than two months of rainfall.

Due to the huge losses caused by natural disasters, Brazilian President Luiz Inacio Lula da Silva asked Congress on Monday to recognize a public state of disaster caused by heavy rains, which would allow the government to increase spending without complying with spending caps set by fiscal rules adopted last year.

The flooding has revived memories of a 2015 rainstorm in Brazil that caused a dam to collapse, killing 19 people and flooding dozens of towns. The dam was located on an iron ore mine owned by Samarco, a joint venture between Brazil's Vale and Anglo-Australian miner BHP. Days after the recent rains began, Vale and BHP offered to pay a nearly $25 billion settlement to repair damage from the collapse.

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