The new rates, known as Freight All Kind 1 (FAK1), will apply to all Asian ports, including Japan, Korea and South East Asia, bound for the Western Mediterranean, Adriatic, Eastern Mediterranean and Black Sea regions.
The new rates are as follows:
| Port of Discharge | New Rates for 20 DV | New Rates for 40 DV-HC |
| West MED | $1,500 | $2,000 |
| ADR | $1,550 | $2,100 |
| East MED | $1,600 | $2,050 |
| BLACK SEA | $1,650 | $2,150 |
These rates are composed of the following base rates:
| Port of Discharge | New Base Rates for 20 DV | New Base Rates for 40 DV-HC |
| West MED | $1,320 | $1,640 |
| ADR | $1,370 | $1,740 |
| East MED | $1,420 | $1,690 |
| BLACK SEA | $1,470 | $1,790 |
The base rates represent port-to-port charges, with out-ports subject to the usual Terminal Handling Charges (TAO/TAD).
The adjustments come as rival container line CMA CGM is also implementing rate increases.
CMA CGM’s new rates, also effective from 1 December 2023 until further notice, include rates for shipments from Asia to North Europe, North Africa and the Mediterranean.
From Asia to Northern Europe:
Source: CMA CGM
From Asia to North Africa and the Mediterranean:
Source: CMA CGM
These increases by major industry players reflect challenging market conditions and ongoing negotiation efforts to counter weak spot rates.
Transport Intelligence’s latest report highlights that several major ocean carriers are set to implement significant all-cargo (FAK) rate increases on key east-west trade lanes in November and December. German carrier Hapag-Lloyd has already increased FAK rates from 1 November this year.
Despite these adjustments, actual market rates remain below the averages recorded by the indices and overall pricing remains uneconomic. According to reports from The Loadstar, the FAK increases implemented from 1 November are not sustainable. The Singapore-based AGX platform, which facilitates cooperation between forwarders and importers, quotes larger Non-Vessel Operating Common Carriers (NVOCCs) offering discounts ranging from $800 to $1,000 per 40ft container. These discounts are often backed up by informal discussions with carriers.
“Quarterly offers in target locations often range from $800 to $950 per 40 feet, so there is no easy way to push through with an increase,” added AGX.
Photo credits @ kees torn, CC BY-SA 2.0, via Wikimedia Commons (illustrative purposes only)