CMA CGM, one of the largest container shipping lines in the world, will increase shipping rates between the Pacific and the U.S. by $300 per TEU (twenty-foot equivalent unit) starting November 2. This rate increase applies to shipments in both directions, including cargo sent from the Pacific to both continents of America as well as shipments sent from the eastern coasts of the United States and Canada and the Gulf of Mexico to the Pacific.
Rate Increases from Asia to South America
Additionally, CMA CGM will raise rates for shipments from Asia to South America by $1,000 per container starting October 15. This increase includes cargo shipped from all Asian ports, including Japan, Southeast Asia, and Bangladesh. The rate increases apply to dry containers, refrigerated containers, and out-of-gauge (OOG) cargo.
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Maersk will also introduce an additional Peak Season Surcharge (PSS) on dry container shipments from the eastern coasts of South America to the U.S. and Canada starting November 5, amounting to $1,000 per 20-foot and 40-foot container. Furthermore, Maersk will increase its fuel surcharge for imports/exports for domestic U.S. cargo to $215 per container starting November 1.
Adding New Station in Swap
Global shipping companies, Mediterranean Shipping Company and Maersk, are adding the Swap station in Brazil to their joint services between the Gulf of Mexico and the eastern coasts of South America. The MSC Yamuna VI will make its first call at Swap on October 26. Reasons for this change include seasonal demand for exports, high volumes of cargo from Asia to South America, and greater flexibility in strategies to manage the unstable global supply chain.
With the return to the Suez Canal route, shipments from India now arrive at the port of Savannah on the eastern coast of the U.S. 10 to 14 days earlier. Georgia port officials stated that this route change through the Suez Canal, which includes Maersk's MECL service and CMA CGM's INDAMEX service, reduces the shipping time for goods between India and the eastern U.S. coast.
Keyon Price, the Georgia Port Authority Chairman, welcomed the improved shipping times, stating, "Georgia ports are pleased with the improved shipping times as several major companies return to Suez routes connecting Georgia to global markets." It is worth noting that nearly three years ago, commercial shipping lines avoided this route due to attacks on vessels in the Red Sea by Iran-aligned Houthis.
Additionally, container ships and container shipping costs are of high importance to the chemical industry, as while most chemicals are liquid and transported in tankers, container ships carry polymers such as polyethylene (PE) and polypropylene (PP) that are transported in granule form. Titanium dioxide (TiO2) is also transported in containers. These ships also carry liquid chemicals in isotanks.
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