CMA CGM announced last week that the spot rate would be frozen, and Hapag-Lloyd followed suit. The industry has begun to believe that the chaotic market has finally returned to the pre-pandemic level; however, is this true?
According to a company report, Mediterranean Shipping Company (MSC), the world’s second-largest container line, announced a price increase for several services beginning on October 15, including general rate increase (GRI), peak season surcharge (PSS), and congestion surcharge (CGS).
- 20’DC: increase GRI by $2,400, PSS by $2,000 and CGS by $2,400. Up $6,800 in total.
- 40’DC: increase GRI by $3,000, PSS by $2,500 and CGS by $3,000. Up $8,500 in total.
- 40’HC: increase GRI by $3,000, PSS by $2,813 and CGS by $3,375. Up $9,188 in total.
- 45’HC: increase GRI by $3,798, PSS by $3,165 and CGS by $3,798. Up $10,761 in total.
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These rate increases are aimed at cargoes departing from South China Ports and Hong Kong, with destination ports on the East and West coasts of the United States.
After CMA CGM and Hapag-Llyod’s announcements, it was expected that the other container lines would halt the escalating freight rates, and rates could return to pre-pandemic levels. However, MSC chooses to raise its prices, defying all expectations and potentially exacerbating the market’s instability.
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