Major container lines will attempt to impose rate hikes in a variety of trades over the coming months despite headwinds that suggest any increases achieved maybe temporary.
With record capacity expected in 2014, freight rates are not expected to stick in the near-term. Global demand for containerized cargo is forecast to increase about 4.2 percent, according to Alphaliner, which is far from enough to remedy the container industry’s overcapacity problem. As a result, carriers are expected to continue losing money in the upcoming year as they struggle to raise rates and cut costs via slow steaming and vessel-sharing alliances.
Nevertheless, carriers have announced a number of planned rate increases, as detailed below, slated to take effect in January and February.
Asia-Europe
Hapag-Lloyd hopes to increase rates on its westbound trade from East Asia, excluding Japan, to Europe by $500 per TEU, starting Jan. 6. The container line also intends to raise rates on westbound shipments from India and Pakistan to Europe by $250 per TEU, beginning Feb. 1.
Maersk Line has scheduled a rate hike on its trade from the Middle East and Indian subcontinent to Europe, effective Feb. 15:
- For shipments to North Europe, the increase will be $400 per 20-foot container and $600 per 40-foot and 45-foot container.
- For shipments to the Mediterranean, excluding Syria, the hike will be $300 per 20-foot container and $500 per 40-foot and 45-foot container.
- For shipments to Syria, the increase will be $220 per 20-foot container and $370 per 40-foot and 45-foot container.
Asia-Africa
Effective Jan. 1, Maersk plans to hike rates on cargo from the Far East to Djibouti by $300 per 20-foot container and $600 per 40-foot and 40-foot high-cube container, and to Sudan by $220 per 20-foot container and $440 per 40-foot and 40-foot high-cube container.
CMA CGM intends to boost rates on shipments from Asia to East Africa by $100 per TEU, starting Jan. 6. The carrier also hopes to increase rates on cargo from Asia to West Africa by $150 per TEU, effective Jan. 10.
Additionally, Mediterranean Shipping Co. aims to raise rates on its trade from the Far East to West Africa and Angola by $150 per 20-foot container and $300 per 40-foot container, starting Jan. 10.
Asia-Australia
Hamburg Süd plans to introduce a rate increase on its southbound trade for export shipments from Hong Kong, South Korea, China and Taiwan to Australia by $400 per TEU, starting Jan. 7.
MSC has scheduled a rate increase for southbound cargo in its Capricorn service from Southeast Asia to Australia. Starting Jan. 15, the hike will be $200 per TEU.
Asia-Latin America
MSC has postponed its scheduled rate increase on shipments from the Far East to South America’s east coast from Dec. 1 to Jan. 1. The hike will be $750 per 20-foot container and $1,500 per 40-foot container.
Cosco Container Lines intends to increase rates on its trade from the Far East to South America’s east coast by $650 per 20-foot container and $1,300 per 40-foot and 40-foot high-cube container, starting Jan. 1. Furthermore, the carrier hopes to hike rates on shipments from the Far East to South America’s west coast and Mexico by $600 per 20-foot container and $1,200 per 40-foot and 40-foot high-cube container, effective Jan. 15.
Beginning Jan. 1, Hamburg Süd hopes to raise rates on its trade from Asia to South America’s west coast, Central America and Mexico. The hike will be $600 per 20-foot standard container; $1,200 per 40-foot standard, high-cube and refrigerated container; and $900 per 40-foot non-operated reefer container.
On the same date, for westbound shipments from Asia to Brazil, Argentina, Uruguay and Paraguay, Hamburg Süd and its subsidiary Alianca intend to implement a rate increase of $750 per 20-foot container and $1,500 per 40-foot standard, high-cube, non-operated reefer and reefer container.
Beginning Jan. 15, Hamburg Süd aims to boost rates in the same trade lane by $300 per 20-foot standard container; $600 per 40-foot standard, high-cube and refrigerated container; and $450 per 40-foot non-operated reefer container. On the same date, the container line also hopes to hike rates on its trade from Asia to the Caribbean by $490 per 20-foot container and $700 per 40-foot, 40-foot high-cube and 40-foot reefer container.
Asia-North America
U.S. Lines has scheduled a rate increase for shipments from Asia to the U.S. and Canada, beginning Jan. 15. For shipments to the U.S. West Coast and Canada’s west coast, U.S. inland point intermodal points via the U.S. West Coast and Canada’s west coast and U.S. East Coast and reverse inland point intermodal points via the U.S. East Coast and Gulf Coast, the hike will be $240 per 20-foot container, $300 per 40-foot container, $338 per 40-foot high-cube container and $380 per 45-foot high-cube container.
In the opposite direction, Hapag-Lloyd aims to boost rates on dry cargo from the U.S. and Canada to East Asia, the Indian subcontinent and the Middle East, effective Feb. 1. The hike will be $160 per 20-foot container and $200 per 40-foot container.
Intra-Asia
CMA CGM plans to implement a rate increase on its trade from Asia, excluding Japan, to Sri Lanka, Pakistan and West India. Starting Jan. 1, the hike will be $100 per TEU, and effective Jan. 15, the increase will be $150 per TEU. Similarly, the container line also hopes to increase rates on its trade from Asia to the Middle East by $200 per TEU, effective Jan. 1 and Jan. 15.
Additionally, CMA CGM intends to boost rates on shipments from Asia to Jeddah, Saudi Arabia; Ain Sokhna, Egypt; Aqaba, Jordan; Djibouti; Port Sudan, Sudan; and Aden and Hodeidah, Yemen. Effective Jan. 1, the hike will be $300 per TEU. For Jeddah only, the hike will be $200 per TEU, effective Jan. 15, and for all other Red Sea ports, the hike will be $300 per TEU on the same date.
The Journal of Commerce
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