International freight hikes? Shipping companies raised freight rates on December 1

Recently, many shipping companies, such as Maersk and Dafei, will raise the comprehensive freight charges from Asia to many countries and regions around the world on December 1. Another wave of price hikes is coming.



A large number of consignees or foreign trade import and export enterprises, in order to cope with the tariff impact of the United States on China, which will increase 10% to 25% in January next year, have made early responses and adjustments to the plan for next year's export of goods, and rushed to complete it this year in order to avoid the pressure and loss brought about by the tariff imposition on enterprises. The huge increase in transport volume has led to a wave of freight charges. Rise.



Fuel surcharge is only one of the reasons for the rise in ocean freight < br />.


Sohang learned that exporters generally forecast high sea freight rates next year. Some of the world's leading shippers, including Nestle, a multinational food giant, expect their operating costs to increase in 2019, a much higher increase than in 2018. Fuel surcharge is only one reason.



In the face of the low sulfur rule in 2020 and the upcoming fuel surcharge, shippers are not expected to pay billions of dollars more, but from next year, they are more worried that the surcharge will be levied unilaterally by shipping companies rather than consulting shippers.



In addition to the basic rates, the expected increase in total costs includes fuel surcharges and inland costs, all of which are increased by different factors.



Next year the cost will increase by 10% to 15% or even more < br />.


Liner companies are trying to raise interest rates, referring to pending surcharges. Inland costs are mainly in the United States and Europe, and the shortage of truck drivers is another factor.



Jochen Gutschmidt, head of freight transport in Nestle's global supply chain, explained: & ldquo; although annual cost increases are normally estimated at 3% or 4%, in some industries, they may increase by 10% to 15% next year, with all transport including ocean transport and an increase in other cost elements of end-to-end processes. ”



Cost increases in 2019 depend on several factors. They are highly dependent on energy prices, but also on regulatory decisions, supply and demand. Considering the total cost of transporting goods from one inland area to another, next year's cost is expected to increase by 10% to 15% or more, depending largely on trade. ”



Nestle acknowledges the need to address the additional costs of low sulphur requirements, which will reduce by $1.2 billion to $18 billion a year.



In October, long-term contract negotiations between shippers and carriers began, which means that October next year will also be included, which is said to be the first month of surcharges in 2020.



Therefore, the outcome of the negotiating conference is very important for overall pricing. According to market sources, this can explain why shipping companies are eager to understand the cost of low sulphur regulations and how much impact they have on the industry.



Shippers are concerned about the overall cost burden, which is rare, according to Gutschmidt.



He explained: & ldquo; Cost growth of 10% to 15% is absolutely abnormal, unlike the basic stable and constant market experience we are experiencing now. I mean, most market fundamentals are still very similar: the number of operators, alliances, GDP growth, and so on. Such factors as energy prices, trade and tariff wars, rising carrier rates and congestion in ecosystems, such as shortage of drivers, are having a significant impact on prices. ”



Nestle uses container ships to transport about 500,000 TEU of raw materials every year, and is an important shipper for liner companies.