Maersk surcharge adjustment, cost changes for routes from mainland China and Hong Kong to IMEA
Maersk recently announced that it will adjust the surcharges from mainland China and Hong Kong, China to IMEA (Indian subcontinent, Middle East and Africa).
The continued fluctuations in the global shipping market and changes in operating costs are the main background factors for Maersk to adjust surcharges. Under the combined effect of multiple factors such as the evolving global trade pattern, fluctuations in fuel prices, and changes in port operating costs, shipping companies need to adjust surcharges to balance revenue and expenditure and maintain operational sustainability.
Types of surcharges involved and adjustments
Peak Season Surcharge (PSS):
The peak season surcharges for some routes from mainland China to IMEA will increase. For example, the original peak season surcharge for the route from Shanghai Port to Dubai was US$200 per TEU (20-foot standard container), which will be increased to US$250 per TEU after the adjustment. The purpose of the adjustment is mainly to cope with the increase in cargo volume and relatively tight shipping resources on this route during a specific period of time. By charging higher peak season surcharges, resources can be reasonably allocated to ensure the timeliness of cargo freight and logistics service quality.
The peak season surcharge from Hong Kong, China to the IMEA region is also within the scope of adjustment. For example, on the route from Hong Kong to Mumbai, the peak season surcharge will be increased from US$180 per TEU to US$230 per TEU.
Bunker adjustment factor surcharge (BAF):
Due to price fluctuations in the international fuel market, Maersk will dynamically adjust the fuel surcharge from mainland China and Hong Kong, China to the IMEA region based on the fuel price index. Taking Shenzhen Port to Jeddah Port as an example, if the fuel price increases by more than a certain proportion, the fuel surcharge will increase accordingly. Assuming that the previous fuel surcharge was US$150 per TEU, after the increase in fuel prices leads to an increase in costs, the fuel surcharge may be adjusted to US$180 per TEU to compensate for the operating cost pressure caused by the increase in fuel costs.
Implementation time of the adjustment
Maersk plans to officially implement these surcharge adjustments from December 1, 2024. From that date, all newly booked goods will be subject to the new surcharge standards, while confirmed bookings before that date will still be charged according to the original surcharge standards.
Impact on cargo owners and freight forwarders
Increased costs: For cargo owners and freight forwarders, the most direct impact is the increase in shipping costs. Whether it is a company engaged in import and export trade or a professional freight forwarding company, it is necessary to re-evaluate freight costs and consider how to reasonably share these additional costs in the contract with customers. For example, a company engaged in clothing exports originally budgeted $2,500 per container for shipping costs from mainland China to the Middle East (including the original surcharge). After the Maersk surcharge adjustment, the freight cost may increase to about $2,600 per container, which will compress the company's profit margin or require the company to negotiate with customers to increase product prices.
Adjustment of route selection: Cargo owners and freight forwarders may consider adjusting route selection or shipping methods. Some cargo owners may look for other shipping companies that offer more competitive prices, or consider reducing freight costs by combining land and sea freight. For example, some cargo owners who are close to Central Asia and do not require high timeliness of goods may first transport their goods by land to a port in Central Asia, and then choose a suitable shipping company to deliver them to the IMEA region to avoid the cost pressure brought about by Maersk's surcharge adjustment.
Senghor Logistics will continue to pay attention to the freight rate information of shipping companies and airlines to provide favorable support for customers in making shipping budgets.
Post time: Nov-28-2024
