Will shipping prices skyrocket in May?

Will shipping prices skyrocket in May?

Recently, a logistics provider issued a notice about the increase in U.S. ocean freight. The notice shows that according to the latest notices from shipping companies (COSCO, CMA, EMC, MSC), from May 1, 2024 to May 2024 On the 14th, sea freight will rise significantly, with an increase of approximately US$1,000.

In addition, CMA shipping company's CJX route has experienced three consecutive empty sailings. The current market has been in a state of liquidation. To ensure that sellers' goods can be shipped on time, please plan in advance to stock up and deliver goods in time.

Entering May, many shipping companies announced that prices will rise.

HMM: The new GRI will be implemented from May 15, 2024 on all services originating in the United States, Canada and Mexico.

CMA CGM: The new FAK rate will be implemented from May 1, 2024 (shipping date) until further notice. USD 2,200 per 20-foot dry box, USD 4,000 per 40-foot dry box/high box/refrigerated box.

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

COSCO Shipping announced on its official website that it will increase the GRI for the U.S. line (the United States and Canada) starting from May 15, 2024. The specific content of the increase in Canada is as follows:

Canada: Increase GRI for intermodal cargo from the Far East to Vancouver/Prince Rupert and via Vancouver/Prince Rupert, as well as all-water transport on the East Coast and intermodal cargo via the East Coast. details as follows:

Per 20-foot container: USD 1,800

Per 40-foot container: USD 2,000

Per 40-foot high cabinet: $2,250

Per 45-foot container: USD 2,532

It can be seen that the price increase area involves North America, Europe, the Mediterranean and other regions. Some sellers have made calculations and concluded that the freight rate for the US West route is expected to increase by at least 30%, while the increase for the US East route will also exceed 20%. %.

Due to the Red Sea crisis, shipping companies have to travel long distances around their routes, causing various costs to rise. Not only that, multiple factors such as rising fuel prices, increasingly stringent environmental regulations and increased labor costs are affecting the operating costs of shipping companies. This round of price increases has been greatly affected by the Red Sea crisis. Many container ships have chosen to abandon the Red Sea route and bypass the Cape of Good Hope. It is estimated that taking the route from the Far East to Europe as an example, the detour lengthens the ship's one-way transportation time by 8 days and increases fuel costs by approximately US$650,000.

The double surge in product costs and sea freight has caused a significant increase in procurement costs. If you have a purchase plan, it is recommended that customers purchase as soon as possible.