Dear Valued Client,

In a bid to keep all our clients and stakeholders informed of the current market, we feel it necessary to share current information which relates to the ocean freight market from China and the Far East into South Africa.

As of tomorrow, 15/05/2024, all shipping lines will implement a general rate increase (GRI) from China and the Far East. This will affect all FCL and LCL orders from this region.

The rate increase is set to be at levels equal to that of Covid 19 and could be even more. While the reason for this sudden increase is not clear, there are a few current market events that are contributing to this increase.

A major reason for this can be attributed to the ongoing war in the middle east and the effects this has had on the global shipping market. The rerouting of vessels on major shipping routes, the extended transit times because of this and the global container shortage all contribute to the instability in the global shipping market.

As of recently, US President Joe Biden is set to announce a major tariff increase for cargo imports from China to the United States. This announcement is set to raise tariffs as high as 100 percent for Chinese electric vehicles from the current 25 percent. Other market segment tariffs such as semiconductors, solar equipment and medical supplies are also set to increase. The threat of these changes creates a high sense of urgency in the Chinese export market. This will add to the increased pressure on the Chinese market and the freight rates into South Africa.

At the moment, air freight rates from China and the Far East into South Africa seem to be stable. However, the knock-on effect may fall onto this mode of transport should the volume of exported cargo shift over.

Pioneer Freight thanks you again for your continued support and understanding at this time. We understand this will have a drastic effect on many local businesses and supply chains. Please be rest assured, Pioneer Freight will always have your best interest at heart and will endeavour to get you the best freight rates available along with the customer friendly service that you are accustomed to.

Kind regards,

Team Pioneer