Maersk hikes rates again
COPENHAGEN: Danish oil and shipping group A.P. Molle –Maersk A/S sid on Friday that it would increase Asia-to-Europe container rates for second time this year, calling existing rates unsus- tainable.
The world’s biggest container shipping company will hike rats for both dry and reefer cargo by $ 500 per twenty foot equivalent unit (TEU) from April 15.
“The prevailing freight rates from Asia to North Europe and the Mediterranean make it unsustainable and financially unviable to offer our current range of services and consistently high schedule reliability, “ Maersk wrote in a letter to customers.
Maersk Line and its nine biggest rivals have already pushed through rate hikes of $424 in March to $1.423 per TEU, according to rate index SCFI.
The company has struggled in the past few years as the container shipping industry has been hit hard by overcapacity and a global economic slowdown. It cut capacity on the Asia /Europe rout –its biggest- by about 21% last year. Modest pick-up in world trade this year,
Analysts are mostly optimistic of a modest pick-up in Asia and recovery in the United States make up for sluggish Euro-pean markets.
But new and bigger vessels delivered from Asian shipbuilders are expected to enter the market in the months to come, adding to existing overcapacity. REUTERS