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Shipping Fares Continue to Rise: 42% in June



Shipping Fares Continue to Rise: 42% in June

The maritime container shipping industry is experiencing a surge in freight rates from Asian countries, following a significant increase in May.

The latest figures from the Association of Professional Transitaires (APT) show that freight rates have risen by 8-42% depending on the size of the container and the country of departure.

For example, a 20-foot container from Asia cost $3,700 last month, but has now increased to $4,000-$5,000.

A 40-foot container has seen an even more significant rise, with rates jumping from $5,600 to $7,000-$8,000 or more, depending on the country of departure.

According to Mahendra Gondeea, President of the APT, the increase in freight rates was expected due to the ongoing congestion in Asian ports and a shortage of containers.

“The delay in transit time is also a major factor,” he said, adding that containers now take 51 days to arrive in Mauritius compared to 25 days previously.

The shortage of containers and congested ports are affecting mainly containers coming from China, Thailand, Singapore, Japan, Indonesia, and India.

Afzal Delbar, President of the Customs House Brokers Association and Director of Silver Line Services Ltd., agreed with Gondeea.

“There is currently a shortage of ships serving maritime routes in the Asian region,” he said.

“Shipping lines are even forced to rent containers from other companies to maintain their operations.” This has led to a surge in freight rates.

However, Gondeea expected a slight decrease in freight rates starting from September. “There is a possibility that shipping lines serving Asian ports will resolve the delay and container shortage issues.

With a return to normal operations, we can expect a decrease in freight rates,” he said.

Delbar also expected a decline in freight rates within two or three months.

Impact on Prices

Gondeea stated that the consequences of the recent freight rate increase are already being felt in Mauritius.

“There is no doubt that imported products from Asian countries are now more expensive. With another increase in freight rates in June, we can expect new price increases,” he said.

Delbar agreed that consumers are already paying more for imported goods and will have to tighten their belts even further with future increases.

Pritam Dabydoyal, Importer and Director of P&P International, is predicting the same scenario. “In addition to the increase in freight rates, importers are also facing devaluation of the rupee and a shortage of foreign exchange. These factors contribute to a surge in prices of imported goods,” he said.

New Increase Expected in July

Delbar is expecting the freight rate increase to continue in July as well. For example, a 20-foot container will increase from $4,000-$5,000 to $5,500-$6,000, while a 40-foot container will rise from $7,000 to $8,000 or more depending on port conditions.

Source: Defi Media

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