Why Are Freight Rates Rising Sharply In May And June?

This is one of the most frequently asked questions by our customers lately. The sharp rise in shipping costs is mainly due to the arrival of the traditional peak shipping season combined with several supply-side constraints. Here are the key reasons:

Peak Season Demand: June marks the start of the busy shipping period as retailers and manufacturers stock up for the second half of the year, causing a sudden surge in cargo volume.

Limited Vessel Space: Many shipping lines are running at near-full capacity, making space extremely tight.

Deployment of Smaller Vessels: Shipping companies have replaced large vessels (e.g., 20,000 TEU) with smaller ones (e.g., 11,000 TEU), resulting in a significant reduction in overall capacity.

Blank Sailings: Shipping lines are implementing intermittent blank sailings (cancelling scheduled voyages), causing many shipments to miss their intended departures. This has led to serious cargo backlog at major Chinese ports and widespread space shortages.

Peak Season Surcharge (PSS): Carriers have introduced or significantly increased PSS to manage high demand.

Other Factors: Port congestion and rising operational costs also contribute to higher freight rates.

As a result, total shipping costs have risen significantly, with Peak Season Surcharge (PSS) reaching as high as USD 2,000 per container on many routes.

Important Notice: Peak Season Surcharge (PSS) Increases in June 2026

Major shipping lines have announced substantial PSS increases effective from early June 2026. Shippers heading to South America, West Africa, and related destinations should act quickly to secure better rates.

Latest PSS Updates (Effective June 2026)

Asia to East Coast South America CMA CGM and other carriers will implement a PSS of up to USD 1,000 per container starting from June 20, 2026.

Far East Asia to East Coast South America (Argentina, Brazil, Paraguay, Uruguay) Maersk will increase PSS to USD 2,000 per container effective from June 4, 2026.

Far East Asia to West Coast South America, Central America, Mexico & Caribbean Maersk has raised PSS to USD 2,000 per container for most container types, effective mid-June 2026.

Far East Asia to West Africa Maersk is applying PSS of USD 1,000 – 2,000 per container depending on container size and specific West African destinations, effective from June 1, 2026.

Far East Asia to Djibouti PSS ranges from USD 500 to 1,000+ per container, with different rates for 20' and 40' containers.

These surcharges are being applied across various trade lanes due to peak season demand, and rates may continue to adjust based on market conditions.

What This Means for Your Business

With PSS increases reaching as high as USD 2,000 per container, transportation costs for shipments to South America and Africa will rise significantly. Booking early is strongly recommended to secure lower rates and avoid last-minute surprises.

At Chrislion International Logistics Co., Ltd, we are closely monitoring these developments and are ready to support our clients with timely solutions.

How Chrislion Can Help You

Early Booking & Space Protection - We can secure space and more competitive rates before surcharges take full effect.

Door-to-Door Solutions - Full logistics services from factory to final destination, including sea freight, inland transportation, and customs clearance.

Cargo Insurance - Protect your valuable goods with comprehensive coverage (including ICC (A) All Risks) and door-to-door insurance options.

Professional Consultation - Our experienced team will provide the latest rate updates and recommend the most cost-effective shipping solutions tailored to your needs.

Act Now

Don't wait until the last minute. The earlier you plan your shipments, the better we can help you control costs and ensure smooth delivery.

Partner with Chrislion International Logistics Co., Ltd for reliable international logistics services and expert guidance during this peak season.

Protect your budget and your cargo - Choose Chrislion as your trusted logistics partner.