Global Shipping Firms Impose Surcharges Amid Red Sea Rerouting
Maersk and CMA CGM, two major global shipping companies, are implementing additional charges due to their decision to reroute ships away from the Red Sea following recent attacks on vessels in the region. These surcharges are meant to offset the increased costs associated with longer voyages around Africa as opposed to using the Suez Canal route. The surcharges, such as the Transit Disruption Surcharge (TDS) and Peak Season Surcharge (PSS), will impact shipping costs, with a standard 20-foot container traveling from China to Northern Europe facing an extra charge of $700, while CMA CGM also announced surcharges for various routes as part of their contingency plan. The situation has led companies to avoid the Red Sea, despite the announcement of a multinational force to patrol the area by the United States.
The container shipping industry is grappling with a surplus of capacity, leading to a drop in customer rates that Maersk CEO Vincent Clerc described as unsustainable during the company's annual shareholder meeting.