CMA CGM announced that it will impose a Peak Season Surcharge (PSS) on three trade routes, which will take effect in batches in July.
Specific costs for the three routes
| route | Additional fee | Effective date |
|---|---|---|
| Indian subcontinent → Latin America | $500/box | within 7 months |
| Indian subcontinent → Red Sea | $1,000/box | within 7 months |
| China → West Africa | $200/TEU | within 7 months |
The surcharge is highest for shipments to the Red Sea, at 1,000 per container ($). This is directly related to the ongoing capacity constraints in the Red Sea region – the risk of Houthi attacks on merchant ships remains, and the costs incurred by airlines detouring around the Cape of Good Hope continue to be passed on to freight rates.
Things to note
- The surcharge of $1,000/container for the Indian subcontinent to the Red Sea route is added on top of the base freight rate, resulting in a significant increase in actual costs.
- The China-West Africa route ($200/TEU) may not seem like much, but the freight rates on the West Africa route are already quite high, so the combined cost shouldn't be underestimated.
- Once the peak season surcharge is implemented, it will be difficult to cancel it in the short term.
When shipping to the Red Sea or West Africa, remember to include this portion in your quote. You'll need to check the current surcharges for each route.Inquiry surcharge.
source:Container News