CMA CGM announces major rate hike on Asia to Mediterranean shipping routes

French shipping company CMA CGM has announced a significant increase in its container shipping rates from Asia to the Mediterranean region.

Starting from January 15- which refers to the date of loading in the origin ports – and until further notice, the Freight All Kinds (FAK) rate for a 40-foot container between Asia and the West Mediterranean will rise to $6,000, doubling from the rate of $3,000 on January 1.

 Prices for shipments to the East Mediterranean, Adriatic, Black Sea, and Syria have also experienced substantial increases.

The decision follows recent attacks by Houthi militants in the Red Sea, prompting a rise in shipping company stocks amid expectations of higher freight rates for longer routes.

Denmark’s Maersk and Hapag-Lloyd are contemplating their vessel routes in response to the volatile situation in the region.

CMA CGM had previously stated its intention to gradually increase vessel transits through the Suez Canal, with flexibility to adjust plans as needed.