shippingposition
  • Home
  • News
  • Editorial
    • Vox Pop
  • Maritime safety
  • Oil and Gas
  • Personality
  • Health
No Result
View All Result
shippingposition

Home » Shippers Brace For Fresh Price Hikes In The ‘New Normal’ For Ocean Freight

Shippers Brace For Fresh Price Hikes In The ‘New Normal’ For Ocean Freight

by Joshua
March 22, 2021
in Coast To Coast

Shippers are bracing themselves for a fresh onslaught of freight rate hikes and peak season surcharges (PSS) from April, as ocean carriers reinforce their supply chain dominance across trade lanes.

Carriers have begun to focus on the traditionally low-revenue backhaul routes in order to restore rates to levels that will incentivise them to make equipment available for cargo shipments, rather than using the default option of deadheading empty containers back to Asia.

For headhaul routes, transpacific carriers, having eased off on their GRIs (general rate increases) in September following a shot across the bows by the Chinese regulators, are again preparing to roll out rate hikes next month.

For example, Hapag-Lloyd has advised customers of a $1,200 GRI per 40ft from Asia to the US and Canada from 1 April, while other transpacific carriers are understood to be applying similar GRIs and PSSs in a month usually bang in the middle of the slack season, when rates are under pressure.

However, US consumer demand is unrelenting, with the Washington-based National Retail Federation predicting retail sales could grow by over 8%, to more than $4.33trn this year, as the nation’s turbo-charged vaccination programme reaches over 100m doses and the economy reopens.

Meanwhile, demand on the Asia-Europe route has softened in the past couple of weeks, but there is no sign so far of a spot rate collapse – rather, the expectation is for a “small correction” from the 450% inflation seen in the market since the second half of 2020.

On the transatlantic, OOCL and Hapag-Lloyd are preparing to raise rates from North Europe to the US by $1,000 per 40ft from 1 April, on a traditionally stable tradelane that would usually see adjustments of less than $100 over the course of a year.

On the backhaul routes, carriers are also applying a range of rate increases and PSSs for 1 April: for example, CMA CGM is adding a $250 per container PSS for North Europe to Asia shipments.

Spot rates on the backhaul, from North Europe to Asia, have virtually doubled, to around $1,600 per 40ft, since October, adding to the woes of exporters having to scrap with carriers reluctant to release equipment. A UK-based forwarder told The Loadstar this week he had been advised of rate increases on all of his export trades.

“Every single one of our export routes are more expensive than six months ago and some are up massively,” he said.

And shippers may have to get used to the higher rates for months, if not for years, to come, overturning the cyclical pattern of the liner industry over the past 10 years. Indeed, NYSHEX executives Bryan Most, ex-Walmart, and Don Davis, ex-Hapag-Lloyd, believe the rate changes seen across multiple tradelanes could be “here to stay”.


Related Posts

Mawani Grants SGP Four 20-Year Port Concessions

Mawani Grants SGP Four 20-Year Port Concessions

June 30, 2025
Ningbo-Zhoushan Container Volumes Hit New Record In H1

Ningbo-Zhoushan Container Volumes Hit New Record In H1

June 30, 2025
IMO Agrees To Start Revision Of Outdated Regulations For Nuclear-Powered Ships

IMO Agrees To Start Revision Of Outdated Regulations For Nuclear-Powered Ships

June 30, 2025
Ships Near Hormuz Sending Unusual Messages to Deter Attacks

Ships Near Hormuz Sending Unusual Messages to Deter Attacks

June 30, 2025

Discussion about this post

Latest News

NPA Bags NASS PAC Transparency Award

NPA Bags NASS PAC Transparency Award

July 12, 2025

Nigeria Customs Says Claim Of Form ‘M’ Migration Charges False

CRFFN Showcases Reform Milestones, Dismisses Court Ruling Misinterpretation

NCMDLCA Faction Distances Self from Amiwero’s Court Action, Backs CRFFN on POF Collection

Customs Intercepts ₦9.2bn Worth of Fake Bedroom Booster, Others

Customs, NAFDAC Inaugurate Implementation Committee for 2024 MoU

Nigeria Customs Intercepts Container with Over 10,000 Donkey Genitals

Senate Hails Adeniyi’s Election as WCO Council Chair, Says It’s  a Major Win for Nigeria’s Global Trade Leadership

Oyetola Launches Door-to-Door’ Diplomacy for Nigeria’s IMO Council Bid

FG Urged To Link Warri-Itakpe Rail To Inland Ports, Road Networks

Red Sea Operation Rescues 4 More From Cargo Ship Sunk By Houthis

Shippers’ Council Set to Establish Border Information Centre at Idiroko, Bolster Trade Efficiency

kindly like our Facebook page

Health

Contraceptive Pills Can’t Cause Cervical Cancer – Expert
Health

Contraceptive Pills Can’t Cause Cervical Cancer – Expert

June 30, 2025

Mrs Roseline Akinlabi, Adolescent and Youth Sexual Reproductive Health Desk Officer, Osun Primary Healthcare Board, says contraceptive pills cannot cause...

ONIONS: The Good Old Healing Vegetable

KNOW YOUR BODY PARTS: The Liver

June 16, 2025
ONIONS: The Good Old Healing Vegetable

ONIONS: The Good Old Healing Vegetable

June 16, 2025
Why Prostate Disorder Cases Are Increasing Among Nigerian Men – Experts

Why Prostate Disorder Cases Are Increasing Among Nigerian Men – Experts

June 1, 2025
20m Nigerians Live With Mental Health Issues, Says WHO

20m Nigerians Live With Mental Health Issues, Says WHO

June 1, 2025
Health Facts You Didn’t Know

How Your Habit Affects Fertility

May 19, 2025
Fruits For Raining Season

Fruits For Raining Season

May 19, 2025
See Mental Illness Like Other Treatable Diseases – Says Suicide Survivor

Health Facts You Didn’t Know

May 19, 2025
Alligator Pepper: Benefits, FAQ, Side Effects, & Warning

Alligator Pepper: Benefits, FAQ, Side Effects, & Warning

April 28, 2025
Water And Health: The Relationship That Helps Life

Water And Health: The Relationship That Helps Life

April 28, 2025

© 2021 Shippingposition

Navigate Site

  • Home
  • About Us
  • Contact us
  • Privacy Policy
  • Sitemap
  • Terms

Follow Us

No Result
View All Result
  • News
  • Coast To Coast
  • Oil and Gas
  • Maritime Education
  • The Terminals
  • Maritime safety

© 2021 Shippingposition