Maersk, the world's largest shipping company, announced a significant increase in European freight rates

   Yesterday (July 3rd), according to relevant media reports, Maersk issued an official notice announcing an increase in the FAK rate (Freight All Kinds) for the Far East Europe route starting from July 31st.

   Maersk stated that this move is aimed at "continuing to provide customers with a wide range of high-quality services", and this FAK rate is valid until further notice, but will not exceed December 31st.

   Announcement display:

   Since July 31, the FAK rate for exports from Asia Mainports to Port of Rotterdam in the Netherlands, Port of     Gdańsk in Poland and Felixstowe in the UK has been increased to US $1025 per 20 feet and US $1900 per 40 feet;

   The rate of FAK exported to Aarhus in Denmark and Port of Gothenburg in Sweden is increased to 1050 dollars per 20 feet and 1950 dollars per 40 feet;

   The FAK rate for exports to Oslo Port in Norway has been increased to $1175 per 20 feet and $2200 per 40 feet.

   Maersk stated that the above rates already include Basic Freight (BAS), Environmentally Friendly Fuel (EFF), and Low Sulfur Surcharge (LSS), but are subject to Terminal Handling Charge (THC) and any other applicable surcharges (including local and contingency fees for each port of origin and destination).

   Meanwhile, the Ningbo Container Freight Index (NCFI) commented that the "oversupply" situation on the route has not improved. Shipping companies continue to sell their shipping space at low prices to secure more orders, "the agency added, adding that freight rates are" still declining ".

   The weak demand for Asian exports from Europe and America, coupled with the influx of a large number of new ultra large container ships into the Asia Nordic route, has led to a disappointing start to the so-called peak season. For example, the Alliance FE3 Loop Line will have four 24000TEU ships replacing the 13400-19870TEU ships, with additional capacity and increased allocation being filled by Alliance partners Hapag Lloyd, ONE,           HMM, and Yangming.

   In addition, the other two alliances have also upgraded ships on the Asia Nordic route, equipped with larger ships due to the delivery of ultra large container ships. The most significant among them is the 2M Alliance, which has taken away the title of "World's Largest Container Ship" from the recently delivered OOCL Domain ship with a capacity of 24346TEU, as MSC Irina and MSC Loreto, two newly built ultra large container ships with a capacity of 24346TEU, have been put into operation.

   At this point, Maersk's announcement of a significant increase in FAK rates will only take effect if the ship's capacity decreases. However, considering the dissolution of the 2M alliance, MSC is clearly unlikely to cancel its goal of operating ships as an independent operator after the dissolution.

   Nevertheless, with the full exposure of the destructive effects on shipping companies in the second quarter and the possibility of even worse situations, other shipping companies may follow Maersk's current unexpected price increase and adopt similar measures, hoping that this move will soon end the Asian economic situation of the route during this period.