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i-maritime News Service

Maersk to raise rates for west-bound cargo from India - 2012-06-11

Maersk, the Danish shipping giant and the world's largest container line, proposes to raise rates on westbound trade from the Indian sub-continent, covering parts of India, Pakistan, Bangladesh and Sri Lanka, to Northern Europe and Mediterranean with effect from July 1.

The proposed increase will be $250 for a TEU/FEU.

Separately, the cargo travelling from Northern Europe and the Mediterranean to the Indian-subcontinent too will see rates increased by $200/TEU and $300/FEU from July 1. It might be noted that the shipping line has been engaged in upwards revision of rates for the past four months or so.

Meanwhile, Maersk has decided to postpone the levy of peak season surcharge of $350/TEU, due on June 1, on the Asia-Europe trade as it has “not seen the usual seasonal pick-up in bookings expected during this time of the year”. The peak season surcharge generally covers the rise in volumes expected in coming months as retailers in Europe prepare for the Christmas sale. It may be noted that Asia/Europe box rates are continuing to dive in a clear signal that the shippers are opposed to the shipping lines' proposal for June 1 rate rise.

Both World Container Index and Shanghai Containerised Freight Index have recorded drops in rates for the Asia-Europe trade route. WCI has shown Shanghai/Rotterdam rate dropped by $106 and Shanghai/Genoa rate by $49/TEU while according to SCFI, the drop in Asia-Europe rate has been $45 and the Asia-Mediterranean rate $35/TEU.

“Although some Asia-Europe carriers have taken decision to postpone the June 1 generate rate increase, the fact that both WCI and SCFI have failed to show any sign of rate increase – in face the rate have dropped by 1.5 per cent – will come as a blow to many shipping lines operating on the route” observe shipping industry sources.

Source : Hindu Business Line