Maersk Line Aims for Asia-Europe Freight Rate Rise

by Ship & Bunker News Team
Thursday July 16, 2015

Maersk Line Tuesday announced a $1000 per TEU freight rate increase on its Far East Asia (excluding Japan) to Europe route effective August 1, 2015.

Rate increases also come for all Far East Asia to East Coast South America, and North East Asia to Australia routes.

"In order to continue offering our broad portfolio of services and high level of reliability it will be necessary for us to implement a number of rate increases/restorations," said Maersk Line.

"We ask for your understanding and look forward to continuing to provide the service you've come to expect from Maersk Line."

The move comes at a time of multi-year lows for rates on the world's busiest route, which last month saw the Shanghai Containerized Freight Index (SCFI) drop to $205 per TEU.

Given that the figure includes a bunker fuel surcharge of about $300 per TEU, it meant carriers were in effect paying to move customers' boxes on the Asia-Europe trade.

Despite a two week upswing, last week SCFI showed rates had slipped 20 percent to $699 per TEU at the end of last week meaning the $1000 per TEU increase is a significant hike.

However, as the market remains plagued by weak demand and over-capacity, actual freight rates may remain significantly lower.

Last month Ship & Bunker reported that a previous attempt at general rate increases was ineffectual, with Goldman Sachs saying the weaker rates year-to-date were a result of the 37 percent decline in bunker fuel prices year-over-year.

Ship & Bunker News Team
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