Northern Europe Fuel Surcharge Increases

In the trans-Pacific region, the NCFI commented that supply and demand fundamentals on the Asia-North America trade route are "generally sound". However, that did not stop spot rates from falling last week, for example the WCI index on the US West Coast fell 7% to $10,154/FEU and East Coast ports fell 5% to $12,276/FEU.

Despite softening rates, shippers are bracing for significant increases in carrier fuel surcharges and skyrocketing shipping costs. According to a related report, from April 1, most ocean carriers in northern Europe will add a 25% fuel surcharge to their shipping costs.

A few days ago, MSC said that the current global political situation is causing significant and unpredictable fluctuations in global fuel prices. As a result, from April 15, 2022, until further notice, MSC will recalculate global fuel surcharges at two-week rather than monthly rates for all Asian-traded spot and quarterly contracts until further notice.

Therefore, if there are Nordic buyers who want to ship from China in the near future, they can book the space first.