What to Expect Increases in 2024

Shipping Company Rate Increases in May: What to Expect

The shipping industry has been experiencing significant disruptions over the past few years, due to factors such as the COVID-19 pandemic, the war in Ukraine, and port congestion. As a result, shipping companies have been implementing general rate increases (GRIs) to offset rising costs.

In May 2024, several major shipping companies announced GRIs for various routes. These increases varied depending on the route and the carrier, but were typically in the range of 10% to 20%.

Here are some of the specific rate increases that were announced in May:

• Trans-Pacific: Evergreen, HMM, ONE, Yang Ming, and ZIM all raised their GRIs for trans-Pacific routes by 1,000-2,000 USD/FEU.
• Asia-Europe: Maersk, MSC, CMA CGM, Hapag-Lloyd, and OOCL all raised their GRIs for Asia-Europe routes by 500-1,000 USD/FEU.
• Asia-Mediterranean: Maersk, MSC, CMA CGM, Hapag-Lloyd, and OOCL all raised their GRIs for Asia-Mediterranean routes by 500-1,000 USD/FEU.

These rate increases are likely to have a significant impact on businesses that import and export goods. Importers will see higher costs for their products, while exporters may have to reduce their margins or pass on the costs to their customers.

In addition to GRIs, shipping companies are also implementing a variety of other surcharges, such as bunker fuel surcharges and peak season surcharges. These surcharges can add up to a significant amount, further increasing the cost of shipping.

The shipping industry is expected to remain volatile in the near future. Businesses that import and export goods should be prepared for further rate increases and surcharges. They should also consider strategies to mitigate the impact of these increases, such as negotiating with their shipping partners or diversifying their supply chains.

Here are some additional tips for businesses that are dealing with shipping rate increases:

• Shop around for the best rates: Get quotes from multiple shipping companies to make sure you are getting the best possible price.
• Consider consolidating shipments: Shipping smaller shipments more frequently can be more expensive than shipping larger shipments less frequently.
• Negotiate with your shipping partners: If you are a high-volume shipper, you may be able to negotiate lower rates with your shipping partners.
• Consider using alternative shipping methods: Air freight and rail freight may be more expensive than ocean freight, but they can be faster and more reliable.
• Diversify your supply chain: Sourcing goods from multiple suppliers in different countries can help you to reduce your risk of being affected by disruptions in any one country.

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