Hapag-Lloyd increases surcharge of USD 5,000 per box for US route

On July 16, Hapag-Lloyd issued an announcement stating that it would increase freight rates on routes from China to the United States and Canada.

The announcement stated that due to the continued extra-long demand from China and the resulting operational challenges in the transportation chain, Hapag-Lloyd will impose a value-added surcharge (VAD) on all cargo transported under regular FAK guidelines.

At the same time, Hapag-Lloyd stressed that this surcharge will not affect any medium-term or long-term contracts and is intended to replace some other temporary surcharges such as SGF (shipment guarantee fee).

The VAD surcharge rules will take effect on August 15, 2021, and will be paid locally in the United States and Canada on a cash on delivery basis. The amounts are as follows:

China to North America (USA and Canada)

1. All 20' container types USD 4000

2. All 40' container types USD 5,000

This year has been a difficult year for cross-border e-commerce. Not only has Amazon strictly investigated small cards and banned a large number of accounts, but also due to the influence of the Delta coronavirus variant, the epidemic has rebounded in many places, causing a great impact on freight forwarders.

On July 16, the Shanghai Export Container Comprehensive Freight Index released by the Shanghai Shipping Exchange was 4054.42 points, breaking the 4000-point mark for the first time.

It can be seen that between 2010 and 2020, the Shanghai Export Container Comprehensive Freight Index remained at around 1,000 points, and even fell below 1,000 points for several consecutive years, but for most of this year, the index continued to break historical records and shipping price rates reached new highs.

Many parts of the world have been hit by the epidemic, which has led to an increase in demand for epidemic prevention equipment and daily necessities in various countries, and supply is insufficient. The United States is a major consumer country, and its import demand for various materials remains high at all times. For various reasons, shipping prices remain high.

In fact, Hapag-Lloyd's surcharge is just the beginning. Due to the tight ship scheduling in major ports around the world, port congestion continues to occur. In addition, with the arrival of the shipping peak season, major shipping companies will successively levy congestion port fees and various additional value-added surcharges.

Shipping costs are closely related to port congestion and the degree of epidemic prevention and control. The editor hereby reminds all merchants to pay attention to such news, take more precautions, retain funds, and ensure the stability and security of the logistics chain.

Freight Forwarding

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North America