As tensions continue to prevail in the Red Sea, the transpacific spot rate in the container shipping market has soared, and spot freight rates from Asia to North America have soared. The SCFI index hit a 12-month high.
Available capacity will be further reduced in the short term, and spot rates will continue in the coming weeks, with momentum expected to continue until the end of January.
Note: Shanghai Export Container Freight Index (SCFI) reflects the changes in the freight rate of the Shanghai export container spot transportation market booked this week and expected to ship in the next 1-2 weeks. Adjustments tend to be made more frequently in response to various externalities.
The freight rate of the route exploded
As of Dec. 20, U.S. West Coast and East Coast freight rates were $1,816 and $2,900 per FEU, respectively, according to shipping **JOC. 21**, China-West US spot freight rises to $2,600 per feu and $3,600 per feu in the US East.
Freight rates on Asia-Europe routes and the Mediterranean have also risen sharply. The market freight rate from Shanghai port to European basic port was 1497 US dollars TEU, up 45 from last week5%, the freight rate to the basic port of the Mediterranean is 2054 US dollars TEU, **309%。
Most of the flights on the Red Sea route are temporarily suspended, and a few flights are difficult to find in one cabin, and the market booking freight rate is large.
Three hundred ships were affected, diverting goods worth US$100 billion
Egypt's Suez Canal Authority said on the 21st that as of the 20th of this month, 113 ships have been diverted from the Suez Canal recently.
As of December 22, 313 vessels have been identified as being affected by the situation in the Red Sea, according to data released by the company. The total capacity is expected to be 4.2 million TEUs. According to estimates by maritime transport data company MDS Transmodal, the value of the dirouted cargo is around $105 billion.
Source: CNBC
Maersk and CMA CGM are already preparing to divert nearly 200 container ships out of the Suez Canal and around the Cape of Good Hope in southern Africa.
In an announcement on the 22nd, Maersk listed 155 ships on Asian routes bound for the east coast of Europe and the United States, which will be diverted due to the "ongoing situation around the Red Sea". Most of these diversions were on the Asia-Europe route, with about 84 vessels on eight different routes affected. Depending on the estimated departure and arrival dates of the vessels listed, the transit time for most vessels will increase.
In addition, another 48 vessels distributed across the four Asian-US East Coasts provided by 2M were also rerouted.
The maximum "Red Sea surcharge" of $3,000 is effective immediately
Because of the need for detours, operating costs** are indisputable, and major shipping companies are also quick to issue a variety of Red Sea surcharges to cover the additional costs. Up to $3000 cabinet !
Let's take a look at the weird surcharges and learn something new by the way:
Maersk
Transportation Interruption Surcharge (TDS).
Peak Season Surcharge (PSS).
Destination Congestion Surcharge (CFD).
There will be a $500 fee per standard container shipped to the East Coast of North America, which includes $200 TDS and $300 PSS.
tds——transportation disruption surcharge
When transportation is interrupted or unstable, such as natural disasters, traffic jams or other problems in the chain, shipping companies may face additional costs and risks. In response to these issues, customers are charged a Transportation Interruption Surcharge (TDS).
The Congestion Surcharge (CFD) for all dry containers from anywhere in the world (excluding Vietnam and other regulated countries) to Yemen is $250 TEU, $500 FEU, effective 12/20/23.
CMA CGM
Red Sea Charge
Cape of Good Hope Surcharge (Contingency Charge).
CMA CGM announced on the 20th that it will impose a "Red Sea Charge", which will apply to all cargo entering and leaving the Red Sea port, effective immediately and until further notice. $1,575 per 20ft dry container, $2,700 per 40ft dry container, $3,000 per reefer container and special equipment. Valid for all cargo that has been loaded or is about to be loaded and discharged from the port.
The "Contingency Charge" is effective from the date of publication (December 20) until further notice.
Hapag-Lloyd
Peak Season Surcharge (PSS).
Emergency Surcharge (ERC).
Operational** surcharge.
Hapag-Lloyd charges ERC fees for cargo to and from the Red Sea, and Hapag-Lloyd is also trying to introduce an "operational**surcharge" of $800-$1,000 for shipments between the Indian subcontinent, the Middle East Gulf, and the eastern and Gulf of the United States, depending on the type of container.
With the implementation of the shipping company's response plan and strategy, the freight rate will be greatly reduced, the voyage will be extended, and the allocation of empty containers will be disrupted, resulting in a shortage of containers at the port of origin and a disordered shipping schedule.
*The impact of price increases and container shortages will continue until the end of January, and may gradually decline due to the sluggish volume of goods. Remind customers to make a shipment and preparation plan, and the shipping company has a temporary change in the voyage or a sudden diversion, and the time limit is delayed for more than 10 days. Especially for those who shipped before the year, we must pay close attention to the announcements of shipping companies and freight forwarders.