Shares in Danish shipping and logistics Maersk (AMKBY (OTC:AMKBY)) jumped more than 7.5% Monday, driven by surging shipping rates.
The surge comes amid a sharp increase in the future prices for transporting a container from China to Europe in June 2024. Since October, these prices have skyrocketed by nearly 400%.
Over the past two weeks, the Red Sea crisis, coupled with unexpectedly high demand, has left many Asia-Europe forwarders unprepared. As a result, this week the spot freight rate indices started reflecting the shifts reported anecdotally in the trade.
Last week, the Drewry’s World Container Index (WCI) recorded a 20% surge week-on-week on its Shanghai-Rotterdam route, reaching $3,709 per 40ft container, closely matching the Xeneta XSI which also reported a 15% increase to $3,716.
Amid these soaring spot rates, available shipping capacity out of Asia is becoming increasingly tight. This scarcity has enabled carriers to prioritize higher-paying Free Alongside Ship (FAK) shipments over contractual cargo, as reported by shippers and forwarders involved in the trade.
The Loadstar reported last week that Maersk would introduce a $1,500 per 40ft peak season surcharge (PSS) from Asia to North Europe starting May 11. However, indications are that this new peak season pricing may have already been implemented, Loadstar said.