French Shipping Company CMA CGM increases Shipping Rates from Asia to Mediterranean

By: Asia Business Outlook Team | Wednesday, 03 January 2024

CMA CGM, a French shipping company, announced on Jan 2 that its container shipping rates from Asia to the Mediterranean region will increase by up to 100% beginning January 15 compared to January 1.

CMA CGM's Freight All Kinds (FAK) rate for a 40-foot long container between Asia and the West Mediterranean will be $6,000 as of 15 Jan. - the date of loading in the origin ports - and until further notice, up from $3,000 on 1 Jan.

Shipments to the East Mediterranean, the Adriatic, the Black Sea, and Syria have also seen significant price increases. When contacted by Reuters, a CMA CGM spokesperson declined to provide additional information on the rate increases.

Shipping company shares have risen since Houthi militants in Yemen attacked some vessels in the Red Sea, on the expectation that longer routes will result in higher freight rates.

Denmark's Maersk has stated that it will decide on Jan 2 whether to resume sending vessels through the Suez Canal via the Red Sea or to continue re-routing them following a weekend attack on one of its ships.

The CMA CGM spokesperson said the company had nothing to add since last week, when it said it planned a gradual increase in the number of vessels transiting the Suez Canal while remaining open to reassessing and adjusting its plans as needed.