Container shipping rates rise 6% as CMA CGM and Hapag-Lloyd implement emergency fees due to drought-related transport challenges.
Due to the impact of geopolitical developments, container shipping continues its upward trend, and now a 'drought' adjustment is being introduced to freight rates.
CMA CGM announced that it will implement an 'Inland Emergency Fee,' stating that the shallowing of rivers has led to a decrease in transport capacity, congestion, extended terminal waiting times, and increased operating costs.
Hapag-Lloyd has also introduced a 'Congestion Surcharge' for hinterland shipments connected to Antwerp and Rotterdam, due to the drop in water levels in the Rhine River and the excessive demand created for road and rail transport. CMA CGM's emergency fee is set at 50 euros per container for inland transport shipments routed through Antwerp, Zeebrugge, and Rotterdam for Belgium and the Netherlands, and 75 euros per TEU for Germany, Switzerland, and France.
Hapag-Lloyd announced that it will charge an additional fee of 50 euros per container for Belgium, the Netherlands, and Luxembourg, and 50 euros per TEU for Germany, France, Austria, the Czech Republic, Slovakia, Hungary, and Switzerland.
The implementation will be effective from September 1 for cargoes outside the FMC scope and from September 20 for cargoes within the FMC scope.
This will also affect Turkish exporters.
Representatives from the maritime sector speaking to DÜNYA noted that the decrease in river transport capacity due to low water levels and the redirection of cargo to alternative road and rail routes are increasing costs.
Cargo owners are now paying extra freight not only for river transport but also for alternative routes used in place of river transport. The low water surcharges applied at the critical measurement point of the Rhine River, Kaub, can reach up to 1,350 euros per container. Burak Kerimoğlu, the Marine and Air Cargo Manager of Asset GLI, one of Turkey's leading foreign trade and logistics companies, emphasized that all export cargoes shipped by sea from Turkey to the ports of the Netherlands (Rotterdam) or Belgium (Antwerp), and then transferred via river and domestic routes to Germany, France, Switzerland, the Netherlands, Belgium, Luxembourg, and the interior regions of Central Europe will be directly affected by these high additional costs. The water level of the Rhine River has dropped to record low levels. On August 19, the water level at the Kaub reference measurement point was measured at 14 centimeters. River vessels still in operation can carry only 15-20% of their normal capacities.
Global freight rates increased by 6% in three weeks.
While low water levels in Europe are increasing logistics costs, global container freight rates continue to rise. The Drewry World Container Index (WCI) increased by 4% last week to reach 4,526 dollars, influenced by the rise in Transpacific routes. Thus, the increase in freight rates over the past three weeks has exceeded 6%. Last week, the Shanghai-New York freight rate reached 9,507 dollars with a 9% increase. Intra-Asia freight rates (IACI) rose by 6% to 1,091 dollars due to port congestion caused by weather conditions and tensions in the Middle East. In contrast, spot freight rates from Asia to Europe continued to decline. According to Drewry's Container Capacity Outlook data, the two blank sailings announced for next week indicate limited capacity. Although port congestion in both Shanghai and Rotterdam eased somewhat in week 33, average waiting times for vessels remain high at 32.3 hours and 25.0 hours, respectively.
Source: Aysel Yücel / Dünya
Source: SeaNews Türkiye
