• Tuesday, March 05, 2024
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Shipping firms impose Red Sea surcharge on Europe, American bound-containers

Here are the 10 biggest global container shipping companies

Container carriers said they will impose extra charges to cover the cost of re-routing ships in response to attacks on vessels in the Red Sea and to avoid Yemen’s Houthi militant group attack on vessels.

Maersk, CMA CGM and Hapag-Lloyd said the surcharges will cover longer voyages around Africa compared with routes via the Suez Canal, and this is already adding to rising costs for sea transport.

Maersk and CMA CGM were the first to introduce the fees, followed by Germany’s Hapag-Lloyd later on Friday.

The three are among leading shipping lines to have suspended the passage of vessels through the Red Sea that connects with the Suez Canal, the quickest sea route between Asia and Europe. Instead, they are directing ships around the Cape of Good Hope at the southern tip of Africa, adding about 10–14 days to a journey that would normally take about 27 days from China to northern Europe.

Maersk said late on Thursday it was imposing an immediate transit disruption surcharge (TDS) to cover extra costs associated with the longer journey, plus a peak season surcharge (PSS) from Jan. 1.

Hapag-Lloyd has said it would redirect 25 ships by the end of the year to avoid the area.

Maersk said a standard 20-foot container travelling from China to Northern Europe now faced total extra charges of $700, consisting of a $200 tax deducted at source (TDS) and $500 peak season surcharge (PSS). Containers bound for the east coast of North America will be charged $500 each, consisting of the $200 TDS payment and a $300 PSS.

Maersk also said routes in other parts of its network would be affected by the disruption, triggering emergency contingency surcharges on a wide range of journeys.

CMA CGM announced surcharges late on Thursday including an extra $325 per TEU on the North Europe to Asia route and $500 per TEU for Asia to the Mediterranean. It said the charges were part of its contingency plan to re-route vessels around the Cape of Good Hope.