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In what appears to be a u-turn, Maersk Line, the world's largest container line, has decided not to go ahead with its earlier plan to hike freight rate on the trade route between Asia (including Indian subcontinent) and Europe from June 1.
The proposed freight increase — $250/ TEU and $500/ FEU — has been postponed till July 1, according to shipping industry sources. The planned rate restoration initiative entailing freight hike, it is felt, might not succeed in the present market condition.
Inquiries reveal that all-in spot rates on the trade have tumbled from around $1,400 a TEU in the beginning of the year to less than $900 TEU now.
Mediterranean Shipping Company, the world's second largest container line, has declared its decision to cancel the emergency bunker surcharge and implement from July 1 a general rate increase of $250 a TEU for all cargoes to be shipped on board its services from Asia to various destinations in North West Continent, Scandinavian and Baltic, North Africa, Adriatic, the Mediterranean and the Black Sea.
Dilemma
CMA CGM, France's number one and world number three container line, too had announced freight increase of $225 a TEU from June 1 “in response drastic deterioration of freight rates.”
The increase is to apply to all shipments from all parts of Asia to all destinations in northern Europe, to be followed by other initiatives from July 1.
Earlier, Orient Overseas Container Limited (OOCL) too had revealed its plan to increase rates on westbound services from the Far East (excluding Japan), the Indian subcontinent and the Middle East to Northern Europe by $275 a TEU from June 1.
Whether these two lines too will follow Maersk and postpone the proposed increase is not clear yet.
Hanjin had announced that from May 15, Far East (excluding Japan) to North Europe and the Mediterranean services would attract a higher freight, an additional $150 a TEU, for dry, reefer and special shipments.
It said that it would also impose a $150 a TEU freight hike on services to North Europe and Mediterranean destinations from the Southeast Asia, Indian subcontinent and the West Asia.
It is not known how successful has been the Korean line's attempts to increase freight.
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