News / Box carriers set new surcharges amid winter headwinds

Severe winter weather continues across Europe, bringing multiple operational challenges, including abrupt terminal closures, to ocean carriers.

And the container lines have introduced new surcharges to recoup the additional costs they are incurring.

CMA CGM told Indian customers they would be charged an additional $100 per container on all types of cargo booked from North Europe, including Scandinavia, Baltic, the UK, France, Germany, the Netherlands, Belgium, and Poland, from 23 February.

The Marseille-based carrier explained: “In a continued effort to provide our customers with reliable and efficient service, CMA CGM announces a new ‘emergency operational recovery surcharge’, linked to recent operational constraints faced in Europe.”

CMA CGM’s weekly Epic service, operated jointly with Cosco and its subsidiary, OOCL, is a premier connection on the India-Europe tradelane with a rotation of Khalifa Port—Jebel Ali—Nhava Sheva—Mundra—Sohar—Tanger Med—Southampton—Rotterdam—Hamburg—Le Havre—Algeciras—Khalifa Port.

Maersk has also issued a series of operational updates, advising customers: “Weather conditions are forecast to deteriorate on 13 February, which may result in some operational stoppage at both terminals [Algeciras and Tangier].”

Concurrently, Maersk has updated its emergency contingency surcharges for the Middle East, Gulf, and Indian Subcontinent to North Europe & Mediterranean trades.

Hapag-Lloyd also flagged supply chain risks tied to the unusual weather in Europe. It said: “Passage through the Bay of Biscay has resumed; however, due to ongoing short-term weather fluctuations, conditions have not improved consistently.

“Any additional costs arising as a consequence of these severe weather conditions will be for the account of the cargo,” it warned customers.

And CMA CGM has already imposed similar “add-ons” for shipments from Europe to West Africa, according to industry updates.

However, industry sources have claimed carriers have a tendency to announce emergency surcharges in an attempt to prop up rates, at least mildly, when they are unable to implement general rate increases or peak season surcharges.

Rates on the eastbound trade from North Europe to India have dramatically weakened in recent months, according to industry data. Current booking rates from Felixstowe/London Gateway/Rotterdam to Nhava Sheva/Mundra are in the range of $400 per teu and $300 per feu.