New Year's Day shipping price increase wave hits, many shipping companies adjust prices significantly
New Year's Day 2025 is approaching, and the shipping market is ushering in a wave of price increases. Due to the fact that factories are rushing to ship goods before the New Year and the threat of a strike at the East Coast terminals has not been resolved, the volume of container shipping cargo continues to be urged, and many shipping companies have announced price adjustments.
MSC, COSCO Shipping, Yang Ming and other shipping companies have adjusted the freight rates for the US line. MSC's US West Coast line rose to US$6,150 per 40-foot container, and the US East Coast line rose to US$7,150; COSCO Shipping's US West Coast line rose to US$6,100 per 40-foot container, and the US East Coast line rose to US$7,100; Yang Ming and other shipping companies reported to the US Federal Maritime Commission (FMC) that they would increase the General Rate Surcharge (GRI) on January 1, 2025, and the US West Coast and US East Coast lines would both increase by about US$2,000 per 40-foot container. HMM also announced that from January 2, 2025, a peak season surcharge of up to US$2,500 will be charged for all services from departure to the United States, Canada and Mexico. MSC and CMA CGM also announced that from January 1, 2025, a new Panama Canal surcharge will be imposed on the Asia-US East Coast route.
It is reflected that in the second half of December, the US line freight rate rose from more than US$2,000 to more than US$4,000, an increase of about US$2,000. On the European line, the ship loading rate is high, and this week many shipping companies have increased the purchase fee by about US$200. Currently, the freight rate for each 40-foot container on the European route is still about US$5,000-5,300, and some shipping companies offer preferential prices of about US$4,600-4,800.
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In the second half of December, the freight rate on the European route remained flat or fell slightly. It is understood that the three major European shipping companies, including MSC, Maersk, and Hapag-Lloyd, are considering the reorganization of the alliance next year, and are fighting for market share on the main field of the European route. In addition, more and more overtime ships are being put into the European route to earn high freight rates, and 3,000TEU small overtime ships have appeared to compete for the market and digest the goods piled up in Singapore, mainly from factories in Southeast Asia, which are shipped early in response to Chinese New Year.
Although many shipping companies have stated that they plan to increase prices from January 1, they are not in a hurry to make public statements. This is because from February next year, the three major shipping alliances will be reorganized, market competition will intensify, and shipping companies have begun to actively grab goods and customers. At the same time, high freight rates continue to attract overtime ships, and fierce market competition makes it easy for freight rates to loosen.
The final price increase and whether it can be successful will depend on the market supply and demand relationship. Once the US East Coast ports go on strike, it will inevitably affect the freight rates after the holiday.
Many shipping companies plan to expand their capacity in early January to earn high freight rates. For example, the capacity deployed from Asia to Northern Europe increased by 11% month-on-month, which may also bring pressure from the freight rate war. Hereby remind relevant cargo owners to pay close attention to freight rate changes and make preparations early.
If you have any questions about the recent freight rates, please consult Senghor Logistics for a freight rate reference.
Post time: Dec-25-2024
