THE WORLD'S TOP TWO SHIPPING LINES APPLY SURCHARGES DUE TO TENSIONS IN THE RED SEA

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THE WORLD'S TOP TWO SHIPPING LINES APPLY SURCHARGES DUE TO TENSIONS IN THE RED SEA

25 December 2023

The world's two leading container shipping lines, Maersk (Denmark) and CMA CGM (France), decided to impose a freight surcharge, after rerouting ships due to concerns about the threat of attacks by the Houthi rebel group in the Red Sea.

Maersk and CMA CGM are among shipping lines that have suspended shipping through the Red Sea adjacent to the Suez Canal, the fastest sea route between Asia and Europe, due to the complex security situation in the waters.

Yemen's Houthi rebel group has threatened to attack any ship crossing the Red Sea and heading for Israel, vowing to stop doing so only when Israel cedes some rights to the Palestinian people in the Gaza Strip.

Citing "severe operational disruptions," Maersk issued an announcement late on Dec. 21 on additional payments including: a shipping disruption surcharge (TDS) effective immediately; and the peak season surcharge (PSS) applies from January 1.

Surcharges apply as trains will have to travel longer distances.

Specifically, these companies are directing their ships around the Cape of Good Hope in the southernmost part of Africa, making the journey from China to Northern Europe (which normally takes about 27 days) an additional 10 days.

It said cancellations and rate increases are expected to continue into Q1 2024, so it recommends customers book 4-6 weeks in advance.

According to Maersk, a standard 20-foot container will incur a total surcharge of $700, including $200 for TDS and $500 for PSS.

CMA CGM announced a $325 surcharge for 20-foot containers on the Nordic route to Asia, and $500 on the Asia-to-Mediterranean route.

Source: tuoitre.vn