Sea freight to EU, US to increase from June
Sending cargo to Europe and the US by ship will become more expensive from June as shipping lines are introducing surcharges to meet the additional cost by routing the vessels through the Cape of Good Hope. In November, they stopped using the Suez Canal due to attacks on ships by Houthi terrorists in the region.
German shipping line Hapag Lloyd will impose a Peak Season Surcharge (PSS) of $1,000 per container from India and West Asia to the North American West Coast.
The PSS from India, Bangladesh, and Sri Lanka to the US East Coast and Gulf Coast will be $500 per container. This will apply to all containers gated in full from June 17, 2024, and valid until further notice, Hapag Lloyd said.
Denmark’s Maersk will impose a surcharge of $540 per twenty-foot equivalent unit from India to the US and Canada. The rates are also subject to other applicable surcharges, including local charges and contingency charges.
Similarly, CMA-CGM from
The circuitous route through the Cape of Good Hope adds about 6,000 nautical miles to a typical voyage from Asia to Europe and doubles the travel time
June 14 (loading date) will impose a surcharge of $500 per container from India (except Bangladesh), West Asia Gulf, Red Sea, and Egypt to the US East Coast and the US Gulf.
The Suez Canal is a vital trade route. Some 19,000 ships— or one every half an hour — pass through the 193-km-long, manmade canal every year.
The circuitous route through the Cape of Good Hope adds about 6,000 nautical miles to a typical voyage from Asia to Europe and doubles the travel time to more than a fortnight, said J Krishnan of S Natesa Iyer Logistics LLP. These ships burn a million dollars worth of fuel per trip more than they would if
they went via the Suez Canal.
EARLY PEAK
An o¢cial of a leading leather exporting unit said the increase would hurt the trade badly. Since last October, the rates to the US have more than doubled.
Research firm Xeneta said ocean freight container spot rates have risen sharply on the world’s top trades since the start of May, prompting speculation that the peak season has arrived early in 2024.
The biggest rise comes in the Far East to North Europe trade, which increased by 30 per cent from April 1 ($3,349) to stand at $4,343 per FEU on May 16. This is 198 per cent higher than 12 months ago ($1,456).
From the Far East into the US West Coast, rates have increased by 29 per cent since the start of April ($3,456) to 4,468 per FEU on May 16. This is 214 per cent higher than 12 months ago ($1,422).
From the Far East into the Mediterranean, rates have increased by 22 per cent since April 1 ($4,144) to stand at $5,044 on May 16 — an increase of 100 per cent compared to 12 months ago ($2,521).
From the Far East into the US East Coast, rates have increased by 21 per cent since April 1 ($4,617) to stand at $5,584 on May 16, an increase of 129 per cent compared to 12 months ago ($2,434).