Ocean Freight Surcharges Lining Up For 2024

Global events are having an impact on ocean freight and it currently looks like this may lead to various surcharges lining themselves up for next year.

It is no secret that ocean freight rates are at rock bottom levels throughout multiple trades right now, and we are yet to see the outcome of carrier's efforts to raise rates through a December GRI.

However, ocean freight may be set for the introduction of several surcharges during the next 2/3 months, which could go some way to supplementing low rates in the near future.

The Emission Trading System (ETS) surcharge is already being introduced in January, which relates to new EU regulations that financially penalise carriers for their emissions. ETS surcharge levels vary from $15-50 per TEU.

Another new surcharge was introduced this month, which relates only to carriers passing through the Panama Canal. The Panama Adjustment Factor ranges between $150 and $300 per TEU, dependent on the steamship line. This effectively compensates carriers for the huge waiting times being experienced due to severe drought at the waterway.

However, there are rumblings of further surcharges. Suez Canal authorities are rumoured to be uplifting toll fees for ships by up to 15% any time soon, which is expected to result in another surcharge.

Then there is the current situation in the Middle East, where cargo ships have been attacked due to the conflict between Israel and Gaza, the potential for war related surcharges is very real if hostilities continue.

As always, your Croft Cargo team are monitoring the situation closely and will bring you news of any updates as they develop.

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