March 2024

Recently, our international partners received an official notice from Israeli international cargo shipping company, ZIM, indicating an extra surcharge of $240 per 20’, $300 per 40’ DV/HC/RF/RH, and $380 per 45’ as the new standard for PCA charges (Panama Canal Adjustment Factor), effective January 1st, 2024.

The current challenge industry professionals face is confirming vessel routes, even from the carrier itself, stemming from the heightened risks of attacks on merchant vessels in the Red Sea and Gulf of Aden. In light of these risks and to ensure the safety of crews, vessels, and cargoes, some vessels may be avoiding the Suez Canal. They might detour to the Cape of Good Hope or opt for a route via the Panama Canal. Consequently, carriers have increased prices across various routes to offset their costs or seek higher profits.

As of now, several shipping lines have applied substantial increases in rates for European routes, from Asia and India to European Ports, the Mediterranean Sea, and the Black Sea. Even the USEC is witnessing a new round of tariff increases. Following this initial rate hike effective January 1, carriers are set to implement a significant number of new GRI (General Rate Increase) and PSS (Peak Season Surcharge) again in January 2024.

Furthermore, the ongoing incidents in the Red Sea may have a lasting impact on the global container supply cycle. This could result in a poor turnover of empty containers, leaving suppliers with insufficient containers to load and causing a severe blockage in the supply chain.

We understand the challenges these developments may pose and assure you that we are diligently monitoring the situation. Rest assured, we will keep you informed of any changes that affect our clients' movement of goods.