Shipping freight rates on Asia-Europe route to go up

Santanu Sanyal Updated - March 12, 2018 at 12:33 PM.

Danish shipping giant Maersk Line, Hong Kong's Overseas Orient Container Line and the United Arab Shipping Company have announced hike in freight rates. Danish shipping giant Maersk Line, Hong Kong's Overseas Orient Container Line and the United Arab Shipping Company have announced hike in freight rates.

At a time when Asia-Europe spot shipping freight is showing a not-so-encouraging trend, several shipping lines active on the route have announced their plans to hike rates, according to shipping industry sources.

Thus, the United Arab Shipping Company has levied from October 1 a rate increase on cargo from the western Mediterranean and Adriatic to the Indian subcontinent and the Arabian Gulf of $200 per container as well as a $500 per TEU hike on shipments from the western Mediterranean and the Adriatic to Iran.

Hong Kong's Overseas Orient Container Line will increase its rate on cargo from Asia to Europe rate by $525 per TEU from November 1. The increase covers cargo from the Far East (including Japan), the Indian subcontinent as well as the West Asia to north Europe, the Mediterranean and to Black Sea ports. It will increase a general rate increase on cargo from Europe to Asia $200 per FEU and TEU from November 1.

The line will further increase freight rates on services from southeast Asia, India and the Middle East to Australia $200 per TEU hike on October 15. The increase will cover cargo from Singapore, Malaysia, Thailand, Indonesia, Vietnam, Cambodia, the Philippines, the Indian subcontinent and the Middle East to Australia.

Danish shipping giant Maersk Line will apply a range of rate increases throughout its container service network from mid-October, plus applying dangerous cargo demurrage at St Petersburg. The carrier is going to increase reefer rates 30 per cent to an average of $1,500 per FEU from January 1, 2013, it is learnt. As the market leader in the reefer segment, Maersk's reefer fleet can carry 230,000 FEU, accounting for 23 per cent of the global fleet of one million FEU, the sources add.

Published on October 8, 2012 09:26