Hello Customers, Colleagues, and Friends,
Ocean carriers serving the Asia-Europe trade lanes have announced significant freight rate increases, peak season surcharges (PSS), and higher fuel-related charges effective July 1, 2026. These market conditions are expected to be similar amongst ASAI-USA import trade lanes.
Strong import demand, combined with tight vessel capacity and an early start to peak season, has enabled carriers to successfully implement rate increases throughout June. Several major carriers have now announced additional increases beginning July 1.
Shipments moving from Asia to Europe are expected to see another substantial freight rate increases beginning July 1.
Contract cargo will also be impacted by higher bunker fuel adjustments. Several carriers have announced fuel surcharge increases that are nearly double current second-quarter levels. Industry analysts continue to report strong demand and constrained vessel capacity, creating market conditions for carriers to maintain elevated rates and surcharges.
European import demand remains strong, with Asia-Europe container volumes continuing to grow. At the same time, carriers have maintained disciplined capacity management, helping support higher freight rates. Fuel costs have also risen significantly following ongoing geopolitical disruptions in the Middle East. Elevated bunker fuel prices are contributing to higher carrier operating costs and resulting fuel surcharge increases.
What this Means for You
- Importers moving cargo from Asia to Europe should expect continued increasing costs.
- Additional Peak Season Surcharges may apply depending on carrier, service, and destination.
- Customers shipping under long-term contracts should review upcoming fuel surcharge adjustments, as many carriers have announced significant increases for the third quarter.
- Tight vessel capacity and strong demand could continue to support elevated freight rates throughout the summer peak shipping season.
- Customers with planned third-quarter shipments should budget accordingly and coordinate bookings as early as possible.
Our team will continue monitoring carrier announcements and market developments and will provide updates as conditions evolve. If you have questions regarding your current shipments or future transportation planning, please contact your Krenz & Hannan representative.
Sincerely, Your friends at Krenz & Hannan International