At the beginning of each new quarter, we would like to inform our relations about the developments of the freight rates for ocean and air freight within our range of services. Due to the current Corona crisis, it will not be easy to issue fixed rates for the 3rd quarter of 2020 either.
Ocean Freight
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Import Asia
Freight rates for the import of full containers from China are showing an upward trend, partly due to the steps taken by shipping lines to avoid a further rate drop, among others, use the instrument of so-called “blanc sailings”. As you have come to expect from us, we absorb the rate fluctuations through our variable surcharge (PSS), which despite this development is still negative compared to January 2020.
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North America
On the other hand, the rates on the North Atlantic shipping routes seem to stabilize or even decrease slightly. For our weekly sea groupage line to Chicago we have therefore been able to lower the GRI of Q2. However this development does not apply to other sailing areas such as the Middle East and the Far East where the rates increased substantial. The vessels are completely full due to a lack of capacity and ocean carriers are making use of this and substantially increasing the ocean rates for the 3rd quarter of 2020.
Air freight
As you know, the majority of air cargo is carried by passenger aircrafts and the majority of them is still grounded with all its consequences. The rates for air freight shipments are therefore unusual high and it is almost impossible to issue fixed rates for a certain period of time. Options and rates vary per case and we try to absorb the enormous fluctuations by using variable surcharges. We expect that this situation will not change much in the 3rd quarter of 2020.
Surcharges
As usual, we will pass on the additional charges for fuel (BAF, LSSC, FSC), currency risks (CAF) and security (SSC, ISPS) known to you. Where possible, we have combined surcharges to limit the number of quotation and invoicing lines. Surcharges as a result of the Corona crisis will be charged as per outlay for all trade lanes and traffic sorts.