CMA CGM said it's raising rates on services from North Europe and the Mediterranean to the United States.
In the westbound Mediterranean trade, London-based shipping consultancy Drewry said "too much vessel capacity has been chasing too little cargo."
CMA CGM said on Oct. 1 it will raise freight rates on dry and refrigerated containers moving from North Europe to the U.S. East and Gulf coasts, Canada and Mexico
by $150 for 20-foot containers and $200 for 40-foot containers.
The French carrier also said it was raising rates on dry and reefer containers moving from the Mediterranean and to the U.S. East and Gulf coasts by $200 for 20-foot containers and $300 for 40-foot containers.
In its current issue of Container Insight Weekly
, Drewry said "trade from the Mediterranean to North America is picking up, but off a very low base, so the second quarter’s 8 percent growth over the first three months of the year could yet turn out to be another false dawn
Drewry noted trade from North Europe to North America also had a 9 percent growth in the second quarter over the first quarter, but year over year, cargo volumes are down 1 percent.
That "suggests cargo mix was a big differentiator in the Mediterranean, with
building materials to the U.S. probably being a key player. According to
Global Trade Information Services
, the sector (including granite) increased by 9 percent between the first two quarters, up to 600,163 tons."
Drewry said the average westbound freight rate in the Med-to-U.S. trade has been oscillating
around $2,100 per 40-foot container since the beginning of the year, suggesting "anything higher was only caused by attempted GRIs that quickly fizzled
The firm also said average vessel utilization in the estbound Med trade reached just 73 percent in June, and will probably still remain below 80 percent for July.
Drewry said westbound and eastbound freight rate levels will continue to
stagnate until at least the end of the year. Radical surgery is required
to withdraw vessel capacity before this situation will change. - Chris Dupin