Maersk, a major Danish shipping line, has announced a rate hike and imposed a $1,000 container fee for cargo en route to the US and Canadian ports starting March 2, 2024. This increase applies to all types of cargo originating from India and West Asia. Shippers express concerns about the potential impact on trade, particularly after facing delays due to the Red Sea Crisis. Shippers anticipate that other shipping lines may follow suit, as the detour via the Cape of Good Hope results in a 15-day delay in cargo reaching its destination from Asia to Europe and further to the US.
CMA CGM had already tripled its freight rates in December 2023, increasing the Freight All Kinds (FAK) to $4,750 per TEU from $1,000 two months prior. Maersk’s rate hike applies uniformly across all container types. Freight charges for a 20-foot container to the US are currently around $4,200. The Red Sea crisis has adversely affected Indian exporters, leading to increased operating costs for major container lines. Experts attribute the steep costs in India to the lack of national capacity. The Red Sea, a crucial waterway for global trade, handles nearly 12 percent of the world’s trade.
Source: Logistics Insider