Several shipping companies to raise prices sharply in 2025

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Please be advised that price increases will be implemented on New Year’s Day. The volume of container shipping is being pushed due to factories rushing to ship goods before the New Year to celebrate and the unresolved threat of a strike at the East Coast port. Shipping companies such as MSC Mediterranean Shipping, COSCO Shipping, and Yang Ming have taken advantage of the situation to issue notices of price increases on the US line starting 1 January next year.

freight container ship

According to data released by the Shanghai Shipping Exchange on December 13, the freight rates from the Port of Shanghai to the US West Coast and US East Coast essential port markets were US$4,023/FEU and US$5,494/FEU, respectively, an increase of 21.6% and 11.6% over the previous period. 257. Mediterranean Shipping Company (MSC), COSCO Shipping Yang Ming Marine Transport and other shipping companies have announced that they will raise freight rates on US routes for 5 years from January 1 2025. For example, MSC raised the price of a 40-foot container on the US West Coast to US$6,150 and the US East Coast to US$7,150. COSCO raised the price of a 40-foot container on the US West Coast to US$6,000 and the price on the US East Coast to US$7,000.

Reasons for the rise in freight rates

Market demand changes:

Spring Festival shipping rush: The Chinese New Year falls earlier each year, and factories are eager to complete and ship orders before the New Year, increasing the volume of goods shipped by container. Space on the US West Coast routes is beginning to tighten, while space on the US East Coast routes remains tight due to empty slots and increased demand, pushing freight rates up.

US buyers stockpiling: In anticipation of the new US administration’s tariff increases, US buyers are stockpiling goods, triggering a ‘rush to export’ and increasing demand for shipping to the US.

Supply risk factors:

US East Coast dock strike risk: The next US president has stated his support for the union’s opposition to automation, and the risk of a strike by East Coast dock workers has once again increased. This may affect freight rates after the holiday, and shipping companies adjust freight rates in advance to deal with the potential risk of transport disruptions.

Capacity allocation issues: Some shipping companies’ control of empty slot plans has made overall space relatively tight, supporting freight rates to a certain extent.

Shipping company strategy: Despite continued market freight rate declines in the fourth quarter, major shipping companies have technically announced increases in booking freight rates, driving up freight rates.

How much the actual freight rate will increase still depends on market supply and demand. If there is a strike at the East Coast terminal, it will inevitably affect the freight rate after the holiday. In addition, many shipping companies plan to expand their capacity in early January to take advantage of high freight rates. For example, they will deploy 11% more capacity from Asia to Northern Europe each month, and alliance restructuring will intensify competition, which may lead to pressure from a freight rate war.

Please note that you should contact the shipping company directly for specific information about the levy. For those who need to ship goods shortly, please pay close attention and spread the news. Shipping rates constantly change, so if you have a shipping plan, you should prepare it as soon as possible to avoid delays!

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