Companies transporting goods from Asia face costs of as much as $10,000 for an urgent full-size shipping container over the next month — about double current spot rates, according to prices circulating between carriers and importers.
Capacity Stretched
Marseille, France-based CMA CGM SA, the world’s No. 3 carrier, already announced a $7,000 rate for a 40-foot container for the second half of June for goods shipped to northern Europe from Asia. That’s up from the current charge of about $5,000. For the first half of June, rates range from $6,000 to $6,500, with premium service offered at $7,500 to $10,000.
With capacity stretched by more than five months of attacks on vessels in the Red Sea, the container shipping industry is scrambling to meet demand that’s picking up in the US and Europe.
Changing Strategies
“Companies are changing stock strategies and responding to longer lead times, shifting normal shipping patterns,” said Trine Nielsen, senior director and head of ocean EMEA at Flexport Inc., a logistics technology company based in San Francisco. “Some companies are even double-booking or increasing booking numbers to secure space, adding to the noise.”
The chief executive of Hamburg, Germany-based Hapag-Lloyd AG, the world’s No. 5 container carrier, attributed the latest spike to the Red Sea capacity issues and “really strong demand” that supports the case for an early peak season and inventory restocking.
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Source: EconomicTimes
