ONE to impose US$1,000 surcharge amid Red Sea tensions

TAIPEI (TVBS News) — Taiwan's shipping market was abuzz on Tuesday (Dec. 20) with news that Japan's Ocean Network Express (ONE) plans to impose an emergency surcharge of US＄1,000 per container, in response to the escalating tensions in the Red Sea.

If the emergency surcharge alongside a US＄1,000 increase in base freight rates were to take effect, the total cost of shipping a large container could soar to US＄4,000. However, this figure remains below the $6,000 being quoted in the Chinese market.

At the end of November, freight charges from Taiwan to Europe averaged between US＄900 and US＄1,000 per large container. On Dec. 1, rates climbed to a range of US＄1,300 to US＄1,400, and by Dec. 15, had further escalated to US＄2,000.

Shipping companies are planning yet another hike, intending to raise rates to $3,000 beginning Jan. 1, 2024.

Further highlighting the surging costs, the Chinese logistics platform, www.5688.cn, reported that the latest published rates for shipping containers from the Far East to Israel have hit a staggering US＄6,000, marking a sixfold increase from the US＄1,000 charged at the end of November.