LONDON: Shipping consultant Drewry says ocean contract freight rates fell six percent on major East-West routes between March and July this year. Drewry says its data comes from Asian, American and European retailers and manufacturers.
"The reduction in average East-West contract rates follows the renewal in May of many transpacific contracts, at lower rates," said Philip Damas, director of Drewry Supply Chain Advisors, the company's logistics consultancy arm.
The apparent rate reduction boost for shippers coincides with an announcement that CMA CGM says it will apply an "Emergency Port Congestion" surcharge of US$100 for a TEU and US$200 for an FFEU box from all Asian ports to Sohar, Oman (right) from September 08 for dry, OOG and reefer cargo.
Maersk Line has announced a similar surcharge from October 01 for North American shipments due to what the company describes as additional vessel costs associated with delayed berthing in the congested port.
Shippers will pay US$100 per TEU, US$200 for TTEU and 45 ft. boxes plus US$400 for TTEU reefers.
According to a report from the Times of Oman, the long-planned closing of the port of Oman and transition of all traffic to Sohar at the end of August has contributed to the current congestion. Read more: