Major Spike: Shipping Costs Soar on Asia/South America Route in November!

The container freight industry is set to experience a significant increase in costs come November, with German container line Hapag-Lloyd implementing a General Rate Increase (GRI) on shipments from Asia to various destinations on the West Coast of South America, Mexico, Central America, and the Caribbean. This GRI, amounting to a US$2,000 rise, will be applicable to all shipments utilizing 20-foot and 40-foot dry containers, including high cube containers and 40-foot non-operative reefers.

Here are some key points to consider regarding this impending change:

• The impact of this rate increase will affect shipments originating from various countries in Asia, including China, Macau, Taiwan, Japan, South Korea, Thailand, Singapore, Vietnam, Cambodia, the Philippines, Indonesia, Myanmar, Malaysia, Laos, and Brunei.
• Destinations on the South American Pacific rim, Mexico, Central America and the Caribbean, as well as countries such as Ecuador, Colombia, Peru, Chile, El Salvador, Nicaragua, Costa Rica, the Dominican Republic, Jamaica, Honduras, Guatemala, Panama, Venezuela, Puerto Rico, and the US Virgin Islands, will also feel the effects of this GRI.
• In the city of Dalian, China, new shipping routes have been established to South America, improving trade connections. Dalian’s port, housing China’s largest banana-ripening warehouse, imports fruit from countries like Ecuador. Bananas make up 95% of the port’s annual processing volume of approximately 60,000 TEU.
• The inauguration of a container ocean line to South America, connecting with Colombia and Ecuador, signifies a substantial step in enhancing trade between regions. This new route streamlines the transport of various goods, such as chemicals and automotive parts to South America, while facilitating imports of agricultural products and seafood to Northeast China.

In light of these developments, efforts are being made to expand sea routes and maritime logistics to bolster the economy’s growth. With an increase in trade between China and South American countries, solidifying connections through new routes is paramount for sustaining this growth trend.

As the container freight industry braces for changes in the coming months, it is essential for stakeholders to adapt and strategize accordingly to navigate these shifting dynamics successfully. Embracing innovation and seizing opportunities for enhanced connectivity will be key in driving the industry forward amidst these transitions.