Carriers Lift Asia-Europe FAK Rates to $6,500 as June Demand Surge Tightens Capacity
Updated
Updated · theloadstar.com · May 29
Carriers Lift Asia-Europe FAK Rates to $6,500 as June Demand Surge Tightens Capacity
4 articles · Updated · theloadstar.com · May 29
MSC set mid-June FAK rates at $6,000 per 40ft to North Europe and $6,500 to the West Mediterranean, while carriers also rolled out peak season surcharges on contract cargo.
1 July bunker adjustments are driving the rush: large contract shippers are pulling freight forward into June before new BAFs replace temporary fuel-surcharge protection and sharply raise costs.
Spot indicators are already climbing, with the Shanghai-North Europe SCFI up 30% week on week to $2,475 per teu and forwarders expecting Asia-Europe rates to reach $6,000-$7,000 per 40ft in late June or July.
On transpacific routes, CMA CGM's withdrawal of the Columbus JAX service cut more than 10,000 teu a week, helping carriers push aggressive June rate increases as prior contract offers were pulled.
Forwarders say space is scarce and carriers may keep revising surcharges higher through June, July and possibly August, leaving shippers little choice but to pay more or delay non-essential imports.
Are carriers exploiting global crises for a price bubble, or are record-high rates justified by market forces?
As shipping chaos becomes the new normal, must businesses abandon global supply chains for localized production?
With contracts now unreliable, what new model can prevent supply chain collapse during the next global shock?