CMA CGM and Hapag-Lloyd to stop all spot freight rate increases
MEKSEA.COM – Recently, the announcement to stop increasing spot rates from two tycoons CMA CGM and Hapag-Lloyd has become “hot” information for the shipping market. This is considered a positive signal for import-export businesses, hoping that the ocean transport market will calm down in the near future.
Recently, congestion at important bottlenecks in the supply chain has taken place on a global scale, such as the closure of some areas at the port of Ningbo (China) in August or the number of waiting ships in Los Angeles and Long Beach (USA) reached a record level on September 10. This is considered one of the main reasons for the record increase in sea freight rates in 2021.
However, after CMA CGM, Hapag-Lloyd announced to stop increasing rates, no major shipping lines have decided to accompany these two European shipping lines. Therefore, if shippers can’t get bookings from CMA CGM or Hapag-Lloyd and switch to other carriers, freight rates will still increase, because market supply is still tight. Meanwhile, shipping lines such as Wan Hai, ZIM and SM Line have a higher percentage of customers buying spot freight than the rate at other major shipping lines.
Furthermore, the announcements by CMA CGM and Hapag-Lloyd so far have only emphasized freight rates without mentioning additional fees. This means that businesses will face large fees such as PSS (Peak-season surcharge) or PCS (Port Congestion Surcharge).
September rates of CMA CGM carrier from Ho Chi Minh City to North America. (photo: Tamyco)
CMA CGM’s September surcharges can be seen on the rise. Even to ensure the goods can be loaded on the ship as planned, the shippers have to spend a large amount of money. Specifically, from Ho Chi Minh City to Toronto, businesses have to spend an additional amount equivalent to 1,000 USD to reserve a place
In addition, from 9/9/2021, CMA CGM will apply another PSS of $750/20 feet and $1,500/40 feet and tall refrigerated containers, from Northern Europe and the ports of Le Havre and Fos of France to Australia.
Besides, according to many experts, the possibility of ocean freight rates has not really reached the peak and will continue to remain at record levels until the end of 2021 and even into 2022.
What Meksea can provide for this tough situation?
For the high cost: A combining container services can help business to save much cost for ocean freight. Meksea can help to stuff many of defferent seafood items into 1 container, you can purchase a diversity of goods with high quality and saving cost.For the booking: We’ll follow strictly the shipping schedule, will update you with the clear time and push for your booking in priority as our agent best solution.
So what is your next purchase plan? Meksea are eager to hear from you and let us bring you our best value from Viet Nam.
By Tuyen Ho (Meksea Team)
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