By Nick Lung     Photo：Samrendra Singh，Link：Unsplash

Demand surged during the peak shipping season, YangMing Line announced freight rates expanded. YML issued a second notice to its customers last Friday (5/28) that from July 1st, it will expand and charge the general rate increase surcharge (GRI), an additional USD2,000 per 40-foot container, and USDD1,800 per 20-foot container. It is based on the latest price per 20-foot container with an increase of 36% in the West and 22% in the East.

YML originally announced on the 26th, the GRI will increase on July 1st by USD1,000 per 40-foot container and USD900 per 20'. The latest announcement of rate increase came out three days later. The rate of increase in the latest notice is double from the 26th. According to industry, shipping line companies now are making huge fortune of money by taking advantage of lack of space and container.

The industry pointed out that the rising rates of container were mainly due to the sudden strong demand last year and the emergence of container scrambles. Major ports in various countries were affected by the epidemic and lack of labor, the operation time was also even longer result in congestion that makes the empty containers could not return to Asia for loading. Because one link after another is stuck together, one point has just begun to moving but it cannot be solved due to another circumstance which is a "chain reactions of Covid-19."

At the beginning of this year, the situation of congestion had begun to improve. Freight rates, and volumes have only rest one month. The rates have risen all the way again in April. It is more than 60% of Americans have taken the vaccine and some of the states have been unblocked with the expectation of the consumption increasing but the sky-high rate force the US government to investigate. If the  shortage of space and container cannot improve, the rate will still remain on the peak.