The Hindu Business Line : Imports from N. America to cost more, says Maersk

Kolkata, June 3 Come July, India’s imports from North America (including Canada) in Maersk Line vessels will cost more. Fuel costs, export demand and a weak US dollar are believed to have led the Copenhagen-based container line to announce freight increases on North American exports from July 1.

The increases will be between $120 and $400 a TEU (20-ft container) depending on destination and the trade routes. For a standard 40-ft container, high cube and 45-ft container, the increases will range from $150 to $400 a container. Refrigerated cargo, shipped in 40-ft high cube refrigerated containers, will sustain a $500 a container increase for most commodities, with minor differences from Canada, according to Maersk sources.

The proposed freight hike will cover trade routes or the Transatlantic, Mediterranean and West Asia for dry commodities, except military shipments. In addition, a general freight increase will impact refrigerated cargo destined to all ports in the Far East, West Asia, Mediterranean, Black Sea, North Europe and Baltic’s (excluding fruit, fresh produce and Alaska region cargo).

Maersk’s sailings by mainline vessels from three Indian ports, namely, Jawaharlal Nehru and Pipavav on the West coast and Chennai on the East and through transhipments in various ports in the world cover the major trade routes on which the shipping line is active.

The weak dollar, according to one estimate, has pushed up US exports by 22 per cent since last year. The significant jump in demand for agricultural products in global markets in turn has boosted equipment demand in the US. The fuel cost is high and so is the repositioning expense as the empties are required to be moved from the coastal ports to inland destinations where the consignments are received.

“With the rapid increase in North American exports, growing equipment costs and availability challenges as well as ever-increasing fuel costs, a general rate increase on North American export cargo is a necessary reality,” observe the sources.

Meanwhile, Maersk Line has won ‘The Highest Throughput by A Shipping Line Award’ for handling highest volumes at Jawaharlal Nehru port in 2007-08 – a total of 569,259 TEUs in all three terminals of the port, comprising 2,91,320 TEUs of exports and 2,77,939 TEUs of imports.

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