The sea freight market has experienced another storm

The sea freight market has experienced another storm, with freight rates rising twice a month.

At a critical moment in the countdown of the new year's long contract on the US route, shipping companies are planning to raise spot freight rates for the second time to increase bargaining chips and strive for a higher long contract price. Like other major shipping companies, Evergreen, Yangming, and Wanhai are optimistic about the rebound in demand in the second half of the year and have announced that they will comprehensively raise freight rates again on May 1st. However, the customer's acceptance will determine whether a higher freight increase will be achieved.

Evergreen and Yangming have recently issued another notice to their customers, stating that starting from May 1st, they will charge an additional GRI (Comprehensive Rate Surcharge) fee for the Far East North America route. It is expected that 20 foot containers will increase by $900 and 40 foot containers will increase by $1000, equivalent to a 60% increase in current freight rates.

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Major container ships around the world are still implementing reduction and deceleration strategies. As global cargo volume begins to recover, major shipping companies have announced that they will start charging GRI surcharges on April 15th (originally planned to increase the freight rate by $1000, but ultimately only by $600). EVA and Yangming have recently issued another notice to logistics practitioners and customers, and will charge GRI again starting from May 1st.

In addition, logistics practitioners point out that global maritime industry insiders generally believe that freight rates should return to a reasonable level. Currently, the Far East North America route, which is in full swing of negotiations, has seen situations where no one is willing to sign contracts that are losing money. Long term customers hope that shipping companies are willing to accept reasonable freight rates while providing stable space. It is understood that the new long term contracts for the US route have been signed, and the freight rates are higher than those for spot goods.