5/19/2014 8:30:27 AM
Multiple carriers have planned general rate increases in various trade lanes in June and July, although any gains achieved could be fleeting as overcapacity and sluggish global demand continue.
Shipping lines in their global operations have lost billions of dollars in four of the past five years because of overcapacity fostered by a rash of orders for new, large container ships. Although only four carriers in the world today have ships of 18,000 TEUs or larger either in operation or on order, more container lines may join the mega-ship club in the future as they seek to remain cost-competitive.
Total container ship capacity scrapped in the first four months of 2014 reached 212,000 TEUs, or 27 percent more than in the same period last year, and is on track to reach a new annual record, according to Alphaliner’s latest newsletter. However, new container ship deliveries continue to outpace scrapping, with vessel deliveries in the first fourth months of 2014 totaling 538,000 TEUs, Alphaliner said. With another 1 million TEUs of new capacity expected to be delivered from May through December, the global container ship fleet is still forecast to grow 5.6 percent this year, according to the analyst.
Maersk Line hopes to boost rates on its westbound trade from the Far East, excluding Japan, to Europe, starting June 1. For cargo to North Europe and Syria, the hike will be $300 per 20-foot container and $600 per 40-foot, 40-foot high-cube and 45-foot container. For shipments to the Mediterranean, the increase will be $400 per 20-foot container and $800 per 40-foot, 40-foot high-cube and 45-foot container.
In the opposite direction, CMA CGM aims to increase rates on shipments from the east Mediterranean to the Far East by $150 per container, beginning June 1.
Hapag-Lloyd also plans to raise rates on eastbound cargo from Europe to Asia by $150 per 20-foot container and $250 per 40-foot container, effective June 16.
Hapag-Lloyd plans to implement three general rate increases, effective June 1:
Carriers have planned rate increases for refrigerated shipments in the westbound trans-Pacific, effective July 1, as part of the Transpacific Stabilization Agreement’s announcement:
Starting July 1, U.S. Lines aims to boost rates on its southbound trade from Canada to Australia and New Zealand, excluding the South Pacific Islands, by $250 per 20-foot container and $500 per 40-foot container.
Hapag-Lloyd intends to hike rates on cargo from Asia to South America’s east coast, beginning June 15. The increase will be $750 per TEU.
CMA CGM hopes to boost rates on its trade from India to West Africa by $150 per TEU, starting June 1.
The Journal of Commerce