Shipping costs are rising after Red Sea attacks force vessels to take longer routes
CNN
Maersk and CMA CGN have introduced new charges to transport goods along many of the world’s busiest shipping routes after re-directing their vessels away from the Red Sea because of attacks.
Maersk and CMA CGN have introduced new charges to transport goods along many of the world’s busiest shipping routes after re-directing their vessels away from the Red Sea because of attacks. Denmark’s Maersk said Thursday that it will impose a Transit Disruption Surcharge (TDS) immediately on 27 trade routes and an Emergency Contingency Surcharge (ECS) on those same routes from the new year, citing “risks, delays and difficulties” in sailing through the Red Sea. For example, the cost of transporting a standard 20-foot container from North America to the Middle East will rise by $1,000 in total on January 1, the company said, because of a TDS of $200 and an ECS of $800. Likewise, France’s CMA CGM announced Thursday that it will immediately introduce surcharges on 11 trade routes, explaining that several of its vessels had been re-routed around the southern tip of Africa for safety reasons. For a 20-foot container travelling from northern Europe to Asia, for example, the firm said it had added $325 onto the shipping cost. Shares in Maersk were up 2.8% by 11.44 a.m. ET. CMA CGM is a private company.