CMA CGM has announced a Peak Season Surcharge (PSS) for containers transported from India, the Middle East, the Red Sea and Egypt to the East and Gulf Coast of the US. The surcharge will come into place on June 17th and will apply to all types of container. The updated PSS rates will be $800 per TEU, $1,000 per FEU and $1,200 per 45ft container, until further notice.
CMA CGM, which is headquartered in Marseille, is one of the world’s largest container shipping companies. The announcement comes at a time when the shipping industry is facing various challenges. The largest container shipping operators reported losses in Q1 2021 due to issues such as the Suez Canal blockage and subsequent congestion, port congestion, and container shortages.
CMA CGM has been greatly affected by these disruptions, with the company issuing a warning in late April that delays caused by the Suez blockage will continue to be felt across the industry for weeks and even months. The company is therefore taking steps to ensure not only that its own operations remain viable, but that customers receive a continued high level of service throughout the remainder of the year.
The industry has been affected by ongoing, unprecedented challenges related to the COVID-19 pandemic, such as reduced demand, supply chain disruptions, container equipment shortages and port closings. These challenges follow a difficult 2020, which was marked by a global pandemic, lockdowns and trade disputes.
Several major shipping operators, including CMA CGM and MSC, have instituted PSS charges in recent months to address these challenges. While shipping rates have been steadily increasing in 2021, many logistics companies have warned that the market may be moving towards a peak, with uncertainty around cargo volumes and global trade patterns expected to persist throughout the coming year.
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