Sunday, February 5, 2023
spot_img
HomeContainersHapag-Lloyd to limit freight surcharge increases, on top of freezing FAK

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Hapag-Lloyd to limit freight surcharge increases, on top of freezing FAK

German container carrier Hapag-Lloyd said it will limit sharp increases in premiums and other surcharges, apart from a freeze in spot rates, a company spokesperson told S&P Global Platts Sept. 12.

“Does the cap include a cap on surcharges? Generally no, but we gave ourselves an internal halt to any new high surcharges in particular for relations with very high FAK rates,” the spokesperson said.
Hapag-Lloyd followed CMA CGM in announcing in the week ended Sept. 11 a halt in spot rate increases as container prices on most trade routes are hovering at record highs.

While CMA CGM said Sept. 9 it will not increase the freight rates till Feb.1, 2022, Hapag said it would avoid the surge “for the time being.”

In the current spot market, there are broadly two key components to the all-in freight — the FAK rate and surcharges. The announcements by the two major carriers had earlier stoked concerns of increases in the form of different surcharges like premium, port congestion and peak season fees, over and above the FAK rates.

Carriers introduced hefty general rate increases on FAK rates and also premium surcharges on top of the FAK, to ensure fixed space and timely loading, as the pandemic resulted in supply chain blockages and container shortage all across the world.

While the current FAK on the active North Asia to West Coast North America route is $9,000/FEU, the all-inclusive premium rate is within $15,000-$22,000/FEU, Platts data showed.

Source: Platts

Related Posts

Video

Finance & Economy
Shipping News
Ports

Keppel Corp posts 9% drop in full-year profit

Singapore’s Keppel Corp said on Thursday its net profit for the year fell 9%, partly hurt by weak performance from its urban development business...

Stolt-Nielsen sees Q4 profits rise on strong markets

Stolt-Nielsen Limited reported unaudited results for the fourth quarter and full year 2022. The Company reported a fourth-quarter net profit of $95.3 million, with revenue...

Euronav delivers better-than-expected Q4 revenue

Euronav NV reported its non-audited financial results for the fourth quarter ended 31 December 2022. Hugo De Stoop, CEO of Euronav said: “Constrained vessel supply...

Wartsila: A challenging year with strong annual growth

HIGHLIGHTS FROM OCTOBER–DECEMBER 2022 Order intake decreased by 24% to EUR 1,638 million (2,150)Service order intake increased by 6% to EUR 791 million (747)Net sales...

Hapag-Lloyd achieves extraordinarily strong result in its anniversary year 2022

On the basis of preliminary and unaudited figures, Hapag-Lloyd has concluded the 2022 financial year – in which it celebrated its 175th anniversary –...

Baltic index hits over 2-year trough on waning demand for larger vessels

The Baltic Exchange’s dry bulk sea freight index dropped to its lowest level in...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury...

Baltic index falls to over 2-year low as larger vessel rates slide

The Baltic Exchange’s dry bulk sea freight index fell to its lowest since June...

Baltic index logs worst month in 3 years

The Baltic Exchange’s main sea freight index registered its biggest monthly percentage fall in...

Baltic index snaps 9-day losing streak as panamax, supramax rates rise

The Baltic Exchange’s main sea freight index snapped its nine-session losing streak on Tuesday,...

DP World wins bid for development of a mega-container terminal at India’s Deendayal Port

DP World has won a major concession to develop, operate and maintain the mega-container terminal at Deendayal port in Gujarat, on the western coast...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury cruising will be one of the main highlights of the...

Port of Los Angeles proposes cruise terminal project

The Port of Los Angeles is inviting comments on a draft Request for Proposals (RFP) for the future development of a new Outer Harbor...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...