Shippers face a beating after carriers veto Red Sea routes.

Shippers are facing a beating in the aftermath of carriers vetoing Red Sea routes. The domino effect has led vessels to circumvent the Suez Canal, opting for the longer route around the Cape of Good Hope. This strategic shift has sent shockwaves through the industry, manifesting in prolonged transit times from Asia to Europe and exponentially higher rates.

The urgency to expedite orders is palpable as shippers attempt to offset the impact of extended voyages. However, the scarcity of equipment in Asia is exacerbating the crisis. Container release is constrained, primarily catering to high-volume “VIP contracts” or those willing to pay a substantial premium.

Surging container rates hit transatlantic.

The surge in container freight rates initially observed on the Asia-Europe trade route and then affecting the transpacific is now poised to impact transatlantic shippers. Spot rates from North Europe to the US East Coast have remained below par for an extended period, a notable drop from the pre-pandemic. The recent announcement from Maersk regarding a Peak Season Surcharge (PSS) from North Europe to the US and Canada, effective from February 5, reflects the dynamic market situation disrupting global trade.



CMA CGM has initiated a “rate restoration initiative” for the trade from European ports to the US, Canada, and Mexico starting January 21. These PSS and rate restorations, combined with previously planned General Rate Increases (GRIs), are expected to impact container spot rates immediately despite weak demand on the transatlantic route.

2024 is the Year of the Dragon!

From February 10 - 24th, countries all over the world will be celebrating the Lunar New Year. Companies and factories all over Asia will be shut down for the 16-day period. Shippers and importers are urged to make arrangements around the celebration. If you have cargo that might be delayed by Lunar New Year. Contact your Coppersmith representative right away.