CMA CGM Raises Asia-Europe FAK Rates to $7,000/40ft: Hotel Linen Freight Impact

CMA CGM Announces New FAK Rates

CMA CGM has revised its Freight All Kinds (FAK) rates on Asia to North Europe, Mediterranean, and North Africa trades, effective for sailings departing between July 15 and 31, 2026. The rate revision comes as the Drewry World Container Index surged 9% to $4,530 per 40ft container in the first week of July, driven by rate increases on both Transpacific and Asia-Europe trade routes.

For hotel linen importers, this rate increase directly affects the landed cost of every container of sheets, towels, bathrobes, and other textile products shipped from Chinese factories. Understanding the new rate structure and its timing is essential for adjusting procurement budgets and delivery schedules.

New Rate Structure by Route

The new CMA CGM FAK rates cover all major Asian origins, including Japan, Southeast Asia, and Bangladesh, to various destination port groups.

Asia to North Europe, covering all North European ports from Portugal to Finland and the United Kingdom: $4,100 per 20-foot container and $7,000 per 40-foot, 40-foot high cube, and 40-foot reefer unit. This is a significant increase that reflects the strong peak season demand and capacity discipline maintained by carriers on the Asia-Europe lane.

Asia to West Mediterranean: $5,800 per 20-foot and $7,900 per 40-foot. This covers ports in Spain, southern France, and Italy.

Asia to East Mediterranean: $6,200 per 20-foot and $8,500 per 40-foot. This route serves Greece, Turkey, Lebanon, Israel, and Egypt, and is particularly relevant for hotel linen imports destined for the Middle East tourism market.

Asia to North Africa: $7,300 per 20-foot and $10,400 per 40-foot. This is the highest tariff on the CMA CGM network, reflecting the complex routing and limited direct service options to North African ports. The North Africa premium is approximately 78% above the North Europe 20-foot rate.

The published FAK rates cover basic freight and bunker-related surcharges and apply to dry cargo, reefers, out-of-gauge cargo, and paying empty containers. Terminal handling charges, EU Emissions Trading System costs, safety and security surcharges, and local fees are billed separately, which means the actual all-in cost per container will be higher than the headline FAK rate.

Drewry WCI Context: Rates Rising Across the Board

The CMA CGM rate hike is not an isolated event. The Drewry World Container Index surged 9% to $4,530 per 40ft container in the week ending July 2, 2026, with increases on multiple key trade routes.

On the Transpacific route, Shanghai to New York rates rose 11% to $7,902 per 40ft container, and Shanghai to Los Angeles increased 10% to $6,349 per 40ft container. Eight blank sailings have been announced on the Transpacific trade route for the following week, reflecting tight capacity. Carriers continue to announce General Rate Increases and Peak Season Surcharges for July, with HMM introducing a PSS of $3,000 per 40ft container effective July 15.

On the Asia-Europe route, Shanghai to Genoa rose 10% to $6,360 per 40ft container, and Shanghai to Rotterdam increased 7% to $4,682 per 40ft container. Only one blank sailing has been announced on the Asia to Europe trade route, as carriers maintain disciplined capacity management amid strong demand.

Strait of Hormuz Reopening: Progress and Remaining Risks

The interim US-Iran agreement has facilitated the reopening of the Strait of Hormuz, with vessel traffic recovering following the evacuation of stranded ships and the designation of authorized transit routes. However, Drewry notes that security risks remain elevated after the suspension of ship escort operations following an attack on a containership near Oman.

This means that while the Hormuz Strait is technically open, the risk premium on Middle East routing has not fully normalized. Hotel linen importers shipping to UAE, Saudi Arabia, Qatar, and other Gulf destinations should expect rates to remain elevated compared to pre-disruption levels, even as the situation improves.

Impact on Hotel Linen Import Budgets

For a typical hotel linen order, the freight cost increase is meaningful. A standard 40-foot container can hold approximately 8,000 to 12,000 kg of hotel linen products, depending on the product mix. At the new CMA CGM rate of $7,000 per 40ft to North Europe, plus approximately $800-1,200 in THCs and surcharges, the all-in freight cost would be $7,800-8,200 per container.

This translates to approximately $0.65-1.03 per kilogram of hotel linen, which represents 5-8% of the total product cost depending on the product type and FOB pricing. For a hotel linen order valued at $45,000 FOB, the freight cost at current rates adds approximately $7,800-8,200, bringing the CIF cost to $52,800-53,200.

Compared to the same period in 2025, when Asia-Europe FAK rates were in the $2,500-3,500 per 40ft range, the current rates represent a 100-180% increase. This is the new normal for 2026, and procurement budgets must reflect it.

Practical Procurement Recommendations

For hotel linen importers with orders shipping in late July or August 2026, the CMA CGM rate increase is immediate. If you have flexibility in carrier choice, compare rates across multiple carriers. While CMA CGM has published these rates, other carriers may have slightly different pricing, particularly if they have different capacity positions or routing options.

For orders that are not time-critical, consider whether a delay of 2-3 weeks could result in better rates. However, Drewry expects rates to rise further in the coming weeks, so delaying may actually result in higher costs rather than lower. The peak season demand pattern suggests that rates are unlikely to soften meaningfully before September.

For Middle East destinations, the East Mediterranean rate of $8,500 per 40ft is particularly relevant. Importers should evaluate whether transshipment via a Mediterranean hub port offers cost savings compared to direct Gulf routing, factoring in the remaining Hormuz security risk premium.

Consolidate orders where possible. A full 40-foot container is always more cost-effective per unit than LCL (less than container load) shipping. If your order volume does not fill a container, coordinate with your sourcing agent or freight forwarder to consolidate with other shipments.

Build a 15-20% freight contingency into H2 2026 procurement budgets. The combination of peak season demand, Hormuz security risks, and carrier rate discipline means that freight costs are likely to remain volatile through at least October.