In the near future, the situation in Gaza remains complex and volatile. Despite talk of a cease-fire, the conflict between Israel and Hamas continues. Israel denied a report by Egyptian News TV about a ceasefire, leaving prospects for a truce uncertain. In addition, the Houthis have also announced a halt to attacks on shipping, but the impact of this decision on the shipping market remains to be seen.
Shipping companies collectively issued March price increase notice
Recently, a number of shipping companies, including Mediterranean Shipping (MSC), Maersk, CMA CGM, Hapag-Lloyd, HMM and Wan Hai, announced price increases in March.
Scope and range of price increase
Mediterranean Shipping (MSC) : Shipping rates from the Far East to the Mediterranean, North Africa and the Black Sea have been significantly increased by up to $1,000 per container.
Maersk: Since March 3, the freight rate from the Far East to Northern Europe and the Mediterranean has been raised to a maximum of $6,200 per 40-foot container.
Cma CGM: From March 1, the freight rate from the Far East to the Mediterranean and North Africa has been raised to a maximum of $6,900 per 40-foot container.
Hapag-lloyd: Increased freight rates from the Far East to Europe and imposed a $300 /TEU Consolidated Rate increase surcharge (GRI) from Asia/Oceania to the Middle East, Indian Subcontinent and Africa.
HMM: Increased shipping rates to North America, Canada and Mexico.
Wanhai: For the cargo exported from China to Asia, the freight will be raised by 100-200 US dollars.
Why the rise in freight rates
Premiums reportedly rose 5.9% in September from a year earlier, mainly due to geopolitical tensions, which also contributed to the increase in textile freight rates. The conflict in Gaza has blocked access to the Suez Canal, sending shipping around the Cape of Good Hope in Africa. Shipping costs have soared. At the same time, the global economic recovery led to a surge in freight demand, coupled with port congestion, high fuel prices, shipping companies in order to seek profit growth, have raised freight.
Sky-high shipping rates are coming
Despite the price increase announced by the shipping company, there is still uncertainty about the market's acceptance of the freight rate increase. Industry insiders believe that the price increase is not a long-term solution, and the actual landing situation depends on the booking situation. In addition, excess capacity could lead to a sharp drop in freight rates if shipping resumes the Suez Canal route after the Gaza ceasefire.
To sum up, the freight rise in March is a foregone conclusion, but whether it can be sustained and whether the increase can be fully landed still needs to observe the subsequent changes in the market and geopolitics, which may also have a certain impact on the next foreign trade exports of textile enterprises.
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