Logistics News in July 2023

This section will discuss rising ocean Freight rates
Major shipping companies and digitalization. So let’s get started!
1> Increase Freight Rates for Asia to Europe
Maersk, CMA CGM significantly increase Freight rates for Asia to Europe
Amidst unstable cargo demand, Maersk and CMA CGM have announced plans to raise freight rates from Asia to Europe.
Maersk’s increase will range from $1,300 to $1,900 per 40ft, while CMA CGM’s rates to $1,075 per 20 ft and $1,950 per 40 ft.
Maersk explained the price increase as a necessary measure to maintain high-quality service.
With the current sluggish growth in cargo demand, it is difficult to add a peak season surcharge, as cargo growth during it is not expected to increase.
It is reported that this is the background behind the decision to raise the surcharge in order to maintain a healthy market and high-quality service.
I personally believe that the price increases by both companies will be favorably received by industry participants.
The competition to lower prices makes it difficult to maintain reasonable prices.
It is likely that the price increase will help maintain service.
It will be interesting to see how this price increase will affect the industry and how shippers will react to it.
It is possible that the success of the price increase will encourage other shipping companies to seek similar strategies.
I will keep a close eye on future Trends in the ocean Freight rate Market while also observing the situation of shippers and shipping companies.
2> Container Freight Rates to North America rise $300!
Container freight rates to North America have reached their highest level since the beginning of the year.
According to data compiled by the Shanghai Port Exchange on July 14, spot freight rates from Asia to North America were $1,771 per 40-foot container,
an increase of more than $300 from the previous week.
Spot Freight rates from Asia to the East Coast were also up $300 at $2,662.
It has been suggested that the price increase may be due to the economic adjustment caused by the U.S. Fed’s rate hike policy and the instability of the Chinese economy.
Around mid-June, it was believed that the FED would need to raise interest rates twice in the future, but recently the prospect of a single rate hike has been gaining strength.
If only one rate hike is needed, the tightening of the economy will ease.
Ocean Freight rates are heavily influenced by the economies of the U.S., China, and Europe.
While it is unlikely that space will be scarce in the future, changes in market conditions could affect space availability and cargo-carrying plans, so appropriate action will be required.
We will continue to monitor market conditions closely and seek appropriate Freight strategies.
3> Second Place in the World in Container Fleet!
CMA CGM eyes second place in the World in Container Fleet! CMA CGM is eyeing second place in the container fleet.
MSC is currently in first place in terms of container fleet size. Maersk in second place and CMA CGM in third place.
CMA CGM has a fleet of 626 vessels and 3.49 million TEU in operation with Maersk in second place with 682 vessels and 4.13 million TEU.
The company currently has 120 vessels, with 1.22 million TEU remaining on order, indicating that it is investing in new vessels.
On the other hand, Maersk’s order backlog is 33 vessels with 400 000 TEU, and the company appears to be holding off on investing in vessels.
The company is strengthening its total logistics and focusing on providing door-to-door services. While CMA CGM continues to invest in new vessels,
MSC, the number one ranked company currently has an order backlog of about 118 vessels.