Container lines announce hike in freight rates

Several major container lines serving the Asia-Europe trade, also covering the Indian sub-continent, have announced freight increases. Some of them have already effected the increases while others are to do so shortly, according to shipping industry sources.

Thus, Denmark’s MAERSK Line has announced it will increase freight $775 per TEU on the Asia-Europe routes effective March 1, which is more than double the current spot market price. The general rate increase will be applied to all dry and reefer cargo shipped from any Asian port to destinations in north Europe and the Mediterranean, according to the Danish shipping giant.

South Korea’s Hanjin Shipping, the world’s ninth largest carrier, has announced a rate restoration plan for various Asia-Europe services from March 1, saying today’s rates cannot cover operating costs.

For services between the Indian subcontinent/Mideast and North Europe/Mediterranean, the increase will be $300 per TEU and $600 per FEU from March 1. All increases would apply to dry, refrigerated and special cargo.

Singapore’s APL, the world’s sixth largest carrier, has increased freight rates to $50 per TEU and $100 per FEU for sailings from India to the Mediterranean with effect from February 1.

This follows some other carriers’ moves to increase rates on India-Europe trade, which includes CMA CGM, Hapag-Lloyd, Zim and Shipping Corporation of India (SCI). Also, APL will levy a peak-season surcharge of $100 per TEU and $200 per FEU and high-cube boxes for dry and refrigerated cargo on West-bound India-Europe/Med trade from February 1 as well.

China’s COSCO Container Lines has announced a wide range of rate increases and surcharges on its main container trades, also covering the trade route to the Indian sub-continent.

A general rate increase (GRI) will apply to all West-bound Asia-Europe cargo, including reefers from the Far East, including Japan to the Indian subcontinent to North-West Europe and the Mediterranean, including Israel, Lebanon, Syria, North Africa and the Black Sea ports.

To the Indian subcontinent, there will be a $100 per TEU increase from March 1, then another $150 per TEU on April 15 and a further $150 per TEU on June 1. The emergency fuel surcharge for the services to the Indian sub-continent, to be effective from February 15, will be $60 per TEU.

Shipments between the Indian subcontinent and North-West Europe, the Mediterranean, including Israel, Lebanon, Syria, the Black Sea, West and North Africa will attract a Bunker Adjustment Factor charge of $515 per TEU and $1,030 per FEU from March 1.

A currency adjustment factor (CAF) charge will be set at 10.19 per cent of ocean freight and apply to both East and West-bound shipments in the Far East, including Japan, and to the Indian subcontinent to North-West Europe and the Mediterranean trade, effective March 1.

(The Hindu Business Line)