Freight price hikes, explosive cabin overbooked

Container freight rates hit the highest level after the epidemic

Container shippers face another challenging period, with spot rates returning to their highest levels outside the pandemic era. Spot rates measured by the Shanghai Containerized Freight Index breached the 2,520 mark on 17 May. The only time it has been higher was during the Covid era from the beginning of 2021 to September 2022.

East-West shipping prices continue to rise

Container spot rates have continued their upwardtrajectory on the trunk east-west trades with doubledigit week-on-week gains on the Asia-Europe and AsiaNorth America routes. Drewry's World Container Index (wCl) recorded 12%week-on-week increases on Shanghai-Rotterdam,Shanghai-Los Angeles and Shanghai-New York legs.which respectively finished the week at $4,172,$4,476and $5,717 per 40ft. "Drewry expects ex-China freight rates to rise due toincreased demand, tight capacity, and the need toreposition empty containers," the analyst said.

Red Sea crisis could bring shipping season to an early start

In the Red Sea, Houthi rebel attacks on vessels have continued to strangle critical supply lanes, as ships have been forced to detour thousands of miles south around Africa's Cape of Good Hope. Shipping rates have also risen steadily as the situation in the Red Sea has continued. According to Freightos, ex-Asia rates to Northern Europe bumped up from $4,000 forty-foot-equivalent units (FEUs) to $4,151 between May 8 and May 15. Ex-Asia rates to the Mediterranean increased from $5,000 FEUs to $5,179 FEUs over that same period.

Spot rates rise and capacity tightens, shipowners control market

While spot rates continue to soar, capacity out of Asia continues to tighten, which has allowed carriers to select higher-paying FAK shipments over contract cargo, according to shippers and forwarders on the trade.last week, The Loadstar reported that Maersk was to implement a $1,500 per 40ft peak season surcharge (PSS) from Asia to North Europe from tomorrow, but sources suggest that new PPS pricing has already begun to be applied.“Our carriers are not pulling rates yet, but they have halved our allocation and added a $1,400 per 40ft PSS from Dalian,” one shipper source told The Loadstar. Maersk upping its peak season surcharges for implementation in May, so that’s the name of the game: find the right surcharge, the one that matches your legal contract with shippers, and then just push hard,” he explained.