Shipping Container rates spark global trade chatter at $10,000
PORTS & SHIPPING

Shipping Container rates spark global trade chatter at $10,000

Companies moving goods from Asia could face costs of up to $10,000 for an urgent full-size shipping container over the next month, which is roughly double the current spot rates.

It was reported by Marseille, France-based CMA CGM SA, the world?s No. 3 carrier, that a rate of $7,000 has been set for a 40-foot container for the second half of June for goods being shipped to northern Europe from Asia. This marks an increase from the current charge of approximately $5,000. Rates for the first half of June vary from $6,000 to $6,500, with premium service being offered at $7,500 to $10,000.

The container shipping industry finds itself in a scramble to meet demand that has been increasing in the US and Europe, largely due to capacity being stretched thin by more than five months of attacks on vessels in the Red Sea. Additionally, another factor contributing to the rise in prices is the increased ordering by importers, driven by concerns about potential disruptions such as port congestion, labor strikes, and higher tariffs on Chinese-made goods.

Trine Nielsen, senior director and head of ocean EMEA at Flexport Inc., a logistics technology company based in San Francisco, remarked that companies are altering their stock strategies and adjusting to longer lead times, resulting in shifts in normal shipping patterns. Some companies are even resorting to double-booking or increasing booking numbers to secure space, further complicating the situation.

According to Freightos data compiled by Bloomberg, in September 2021, spot rates for 40-foot containers to the US West Coast from China skyrocketed to over $20,000 due to a surge in demand related to the pandemic. Four months later, the rate for shipments from China to Europe reached nearly $15,000.

The CEO of Hamburg, Germany-based Hapag-Lloyd AG, the world?s No. 5 container carrier, attributed the recent spike in rates to the capacity issues in the Red Sea and the robust demand, which he believes supports the argument for an early peak season and inventory restocking.

While the duration of the surge in short-term container rates remains uncertain, Rolf Habben Jansen, the CEO, mentioned in an interview on Bloomberg Television on Wednesday that it could persist for another couple of months if the situation in the Red Sea does not improve.

Companies moving goods from Asia could face costs of up to $10,000 for an urgent full-size shipping container over the next month, which is roughly double the current spot rates. It was reported by Marseille, France-based CMA CGM SA, the world?s No. 3 carrier, that a rate of $7,000 has been set for a 40-foot container for the second half of June for goods being shipped to northern Europe from Asia. This marks an increase from the current charge of approximately $5,000. Rates for the first half of June vary from $6,000 to $6,500, with premium service being offered at $7,500 to $10,000. The container shipping industry finds itself in a scramble to meet demand that has been increasing in the US and Europe, largely due to capacity being stretched thin by more than five months of attacks on vessels in the Red Sea. Additionally, another factor contributing to the rise in prices is the increased ordering by importers, driven by concerns about potential disruptions such as port congestion, labor strikes, and higher tariffs on Chinese-made goods. Trine Nielsen, senior director and head of ocean EMEA at Flexport Inc., a logistics technology company based in San Francisco, remarked that companies are altering their stock strategies and adjusting to longer lead times, resulting in shifts in normal shipping patterns. Some companies are even resorting to double-booking or increasing booking numbers to secure space, further complicating the situation. According to Freightos data compiled by Bloomberg, in September 2021, spot rates for 40-foot containers to the US West Coast from China skyrocketed to over $20,000 due to a surge in demand related to the pandemic. Four months later, the rate for shipments from China to Europe reached nearly $15,000. The CEO of Hamburg, Germany-based Hapag-Lloyd AG, the world?s No. 5 container carrier, attributed the recent spike in rates to the capacity issues in the Red Sea and the robust demand, which he believes supports the argument for an early peak season and inventory restocking. While the duration of the surge in short-term container rates remains uncertain, Rolf Habben Jansen, the CEO, mentioned in an interview on Bloomberg Television on Wednesday that it could persist for another couple of months if the situation in the Red Sea does not improve.

Next Story
Real Estate

Centre proposes digital property law to modernise registrations

In a landmark move to modernise India’s property registration system, the Central Government has released the draft Registration Bill, 2025, which seeks to replace the 117-year-old Registration Act of 1908. The proposed legislation introduces a fully digital, paperless, and citizen-centric framework for registering immovable property — a first for India’s real estate sector. Prepared by the Department of Land Resources under the Ministry of Rural Development, the draft bill proposes key changes such as online submission and registration of documents, electronic admission and verific..

Next Story
Infrastructure Transport

GMDA Approved to Cut 1,300 Trees for Gurugram Metro Construction

The Gurugram Metropolitan Development Authority (GMDA) has obtained approval to fell 1,300 trees between Millennium City Centre and Hero Honda Chowk for the Gurugram Metro project, officials stated on Monday.A senior GMDA official mentioned that the forest department had granted clearance the previous week. The official explained that permission had been received to cut down 1,300 trees, while approval for felling an additional 500 trees on the stretch from Hero Honda Chowk to Sector 9 was expected soon. They added that the modalities for tree felling would be coordinated with Gurugram Metro R..

Next Story
Infrastructure Transport

PIB Clears East-West Corridor for Lucknow Metro Project

The Public Investment Board (PIB) has granted approval for the East-West Corridor of the Lucknow Metro, with an estimated project cost of ₹5,801 crore. This corridor, part of Phase 1B of the metro project, will cover a distance of 11.165 km, stretching between Charbagh and Vasantkunj.The decision was made during a PIB meeting held in Delhi in the first week of May, which was chaired by the Union Finance Secretary. The approval followed the clearance of the detailed project report (DPR) by the Uttar Pradesh government in March 2024. Subsequently, the Network Planning Group (NPG) provided the ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?