- CMA CGM announced a substantial increase in container shipping rates.
- FAK rate for a 40-foot container between Asia and the West Mediterranean will jump.
- The recent Red Sea attack has buoyed shipping companies’ stock prices.
CMA CGM Increases Shipping Rates
French shipping giant CMA CGM announced a substantial surge in container shipping rates from Asia to the Mediterranean region, slated to take effect from Jan. 15, impacting cargoes loaded from the originating ports, reports Reuters.
Rate Hikes and New Prices
Effective Jan. 15, the Freight All Kinds (FAK) rate for a 40-foot container between Asia and the West Mediterranean will jump to $6,000, marking a significant 100% increase from the $3,000 rate set. Similar sharp increases were observed for shipments to the East Mediterranean, the Adriatic, the Black Sea, and Syria.
Limited Details and Market Reactions
Despite the rate hikes, CMA CGM declined to disclose further specifics regarding the adjustments when approached for comment. The recent attacks by Yemen-based Houthi militants on certain vessels in the Red Sea have buoyed shipping companies’ stock prices, anticipating potentially elevated freight rates due to longer routes.
Industry Responses and Suez Canal Consideration
Denmark’s Maersk is deliberating whether to resume navigating vessels via the Suez Canal through the Red Sea following a recent attack on one of its ships. Maersk aims to decide on this matter shortly, possibly following the actions of rival Hapag-Lloyd, which has continued to reroute its vessels.
CMA CGM, maintaining a stance established last week, has indicated plans for a gradual increase in vessel transit through the Suez Canal. The company remains flexible, ready to reassess and adjust its strategies as circumstances evolve.
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Source: Reuters
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