Concerns Mount as Shippers Accuse Carriers of Price Gouging on Asia to Europe Routes Amidst Red Sea Shipping Crisis
Shippers and forwarders are expressing growing worries about alleged carrier price gouging on the Asia to Europe shipping services. They point to significant hikes in charges, combining peak season surcharges, increased fuel costs, and security surcharges stemming from the Red Sea shipping crisis, all set to merge into a single charge starting January.
An anonymous forwarder disclosed that carriers quoted $1,400/FEU in December, escalating to $5,200/FEU and $4,000 for a 20ft container from January. Post-Chinese New Year, they anticipate a further spike to $12-15,000/FEU. Uncertainty looms regarding how these charges will be applied, with questions on security surcharges for Cape-bound vessels and additional fuel charges for those transiting the Suez Canal.
While December freight rates have been honored, Maersk’s announcement of resuming Suez services on December 24 raises skepticism. Despite the initiation of Operation Prosperity Guardian (OPG) to secure Red Sea/Gulf of Aden routes, doubts persist among industry participants.
The forwarder contends that the notion of a peak season is manufactured by shipping lines, a sentiment echoed by Xeneta’s chief analyst Peter Sand. Sand disputes a capacity crunch, highlighting increased deployment of vessels and varied tactics to limit capacity.
Red Sea attacks prompting vessel diversions around the Cape of Good Hope have fueled concerns about higher rates and capacity shortages. Global Shippers’ Forum director James Hookham remains cautious, acknowledging potential delays but questioning the validity of the peak season claim, citing flat demand and carriers’ low ship utilization rates.
As the industry grapples with these challenges, stakeholders remain vigilant about the evolving dynamics and potential impacts on global trade routes.
