France’s CMA CGM hikes shipping rates between Asia and Mediterranean

FRENCH shipping group CMA CGM will increase its container shipping rates from Asia to the Mediterranean region by up to 100 per cent as of Jan 15 compared to Jan 1, it said in a notice posted on its website on Tuesday (Jan 2).

As of Jan 15 – which refers to the date of loading in the origin ports – and until further notice, CMA CGM’ Freight All Kinds (FAK) rate for a 40-foot long container between Asia and the West Mediterranean will be US$6,000, up from US$3,000 on Jan 1.

Prices for shipments to the East Mediterranean, the Adriatic, the Black Sea and Syria were also sharply raised.

A CMA CGM spokesperson declined to provide further details on the rate hikes when contacted by Reuters.

Shares in shipping companies have risen since attacks by Yemen-based Houthi militants on some vessels in the Red Sea on expectations that longer routes will result in higher freight rates.

Denmark’s Maersk has said it will decide on Tuesday whether to resume sending vessels through the Suez Canal via the Red Sea or follow rival Hapag-Lloyd in continuing to re-route them after a weekend attack on one of its ships.

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The CMA CGM spokesperson said the group had nothing to add since last week, when it said it was planning a gradual increase in the number of vessels transiting through the Suez Canal, while standing ready to reassess and adjust its plans as needed. REUTERS