CMA CGM and Hapag-Lloyd to increase Asia-Latin America rates by $1,000 per FEU from March 1, despite an 80% drop in spot prices over seven months.
CMA CGM and Hapag-Lloyd have announced plans to raise freight rates on Asia-Latin America trades by US$1,000 per FEU from March 1, despite spot prices having fallen more than 80 per cent in the past seven months, reports London's S&P Global.
Shanghai to Santos rates dropped from US$6,374 per TEU in July 2025 to $1,131, according to the Shanghai Shipping Exchange. Analysts say the decline reflects heavy capacity injections, with carriers adding about 700,000 TEU over the past year.
Capacity from Asia to the East Coast of South America is set to reach 303,517 TEU in March, up nearly nine per cent from February and the highest in more than three years, data from eeSea showed.
The latest increase follows similar $1,000 hikes announced late last year. CMA CGM said the new rates will apply to out-of-gauge and paying empties, while Hapag-Lloyd confirmed coverage for 20-foot, 40-foot, and non-operated reefers.
Brazilian forwarders expressed scepticism, noting strong demand but persistent overcapacity. A Sao Paolo-based freight executive said shipping lines were struggling to fill vessels and warned that more capacity was expected after Chinese New Year.
Hapag-Lloyd's latest notice set East Coast of South America base rates at $1,000 per TEU and $1,200 per FEU, while West Coast rates fell to $750. Platts pegged North Asia to West Coast South America rates at $1,200 per FEU from February 2, down 60 per cent year on year.
