"Depending on the scale and duration of the impact on the Suez Canal, freight rates on the Asia-Europe route may rise by 100%."
Tensions in the Red Sea region have intensified, and the Suez Canal is in emergency. Asia-Europe shipping routes are in emergency.
After Maersk and Hapag-Lloyd ships were attacked in the Red Sea, many liner giants including Maersk, Hapag-Lloyd, Mediterranean Shipping Company (MSC), and CMA CGM have successively announced the suspension of services passing through the Red Sea. The latest news is that Orient Overseas has announced that it will stop accepting cargo to and from Israel until further notice.
As the only way to enter and exit the Suez Canal, the Red Sea has been pressed on the pause button. This has caused the Suez Canal to face great traffic pressure. Some ships have bypassed the Cape of Good Hope to avoid the risk of war.
According to statistics from the Suez Canal Authority, 55 ships have circumnavigated the Cape of Good Hope from November 19 to December 17, and 2,128 ships chose to pass through the Suez Canal during the same period.
The Shanghai Export Container Comprehensive Freight Index (SCFI) released by the Shanghai Shipping Exchange shows that the market freight rate (sea freight and sea freight surcharges) exported from Shanghai Port to European basic ports on December 15 was US$1,029/TEU, an increase of 11.2% from a week ago.
The market conditions for Mediterranean routes are basically in sync with European routes. On December 15, the market freight rate (shipping and shipping surcharges) exported from Shanghai Port to basic Mediterranean ports was US$1,569/TEU, an increase of 13.1% from a week ago.
Recently, MSC, CMA CGM and ZIM have all announced new price increase plans for Asia-Europe routes.
MSC recently raised the FAK from Asia to the Western Mediterranean, Adriatic Sea, Eastern Mediterranean and Black Sea and announced that the latest FAK new freight rates for Asia-Europe routes will take effect on January 1, 2024.
CMA CGM announced that it will increase FAK routes from Asia to Northern Europe, the Mediterranean and North Africa, which will be implemented from January 1, 2024. The scope of coverage includes cargo from all Asian ports destined to all Nordic ports and cargo from all Asian ports destined to the Western Mediterranean, Adriatic Sea, Eastern Mediterranean, Black Sea, Syria, Algeria, Tunisia, and Libya.
CMA CGM’s new FAK standards for routes from Asia to Northern Europe, the Mediterranean and North Africa
ZIM has also raised FAK from Asia to the Mediterranean and Black Sea regions from December 13, 2023.
