Starting from April, sea freight rates have increased crazily. What’s the reason?

Brazil's ITAPOA port handled 107,475 TEU in April, a new monthly high, beating the previous record of 106,565 TEU set in October 2023. Felipe Fioravanti Kaufmann, Director of Business Development and Customer Experience at Brazilian Ports, commented on the importance of these. figure. “We have been the fastest-growing private terminal in the country for the past two years and currently hold about 8.5% of the market,” he said. In April, dry cargo imports at the Port of Itapo increased to 35,692 TEUs, which is more than this year. Earlier, January shipments were at 36,951 TEU, while dry cargo exports were at 17,317 TEU, second only to December last year's 18,891 TEU.

Strong electric vehicle demand from China sends freight rates soaring in South America and West Africa

Rates from China to South America are currently very high. One reason is that Brazil and Mexico plan to impose additional tariffs on Chinese electric vehicles in July and beyond. Automakers are scrambling to ship to these areas without any orders. BYD has shipped 100,000 vehicles so far. Electric vehicle companies have seized most of the shipping resources. Many shipping lines have withdrawn vessels heading to West Africa to execute these large orders, resulting in a general increase in freight rates to West Africa.

Maersk announces new peak season surcharge for shipments from Far East Asia to global destinations

Danish shipping giant Maersk has announced the implementation of a new peak season surcharge (PSS), affecting freight from Far East Asia to various destinations around the world. These surcharges are designed to meet increased demand during peak shipping seasons. Surcharge for all 20-foot dry containers is $1,000. In addition, Maersk will also increase the peak season surcharge for freight from the Far East to Kenya. The adjustment will take effect in June, with a flat rate of US$800 per container. These adjustments reflect ongoing changes in the global shipping industry, which is affected by fluctuations in market demand and operating costs.

Based on this, we infer that it is difficult to see a substantial reduction in shipping costs before July. This will, to a certain extent, affect the import and export business and cause great trouble to both suppliers and buyers. Importers and exporters should plan accordingly to accommodate increased transportation costs during the peak season.