Major container lines hope to implement rate increases in a variety of trades in January and February, despite signs that any hikes achieved may be fleeting.
With record capacity predicted in the upcoming year, freight rate increases are not expected to last in the near-term. Nevertheless, carriers have announced a number of planned rate increases, as detailed below.
Asia-Europe
CMA CGM plans to introduce a rate hike of $250 per 20-foot container and $500 per 40-foot container for shipments from India, Pakistan and Sri Lanka to Europe, North Africa, Central America, the Caribbean and South Africa, effective Feb. 1.
Hyundai Merchant Marine announced it expects to improve profitability through a rate increase of $1,000 per FEU on its European line, effective Dec. 16, and $200 per FEU on its American line, effective Dec. 20.
“We implemented [the general rate increase] because the demand for vessels increases at the end of the year,” said an HMM official in a written statement. “Typically, container traffic surges before long holidays like the Lunar New Year. This year’s Lunar New Year falls at the end of January, so the company is expecting an increase in traffic volume and freight rate from mid-January.”
Asia-Africa
Maersk Line aims to increase rates in its trade from India to West Africa, effective Feb. 15. The planned hike will be $300 per 20-foot container and $500 per 40-foot high-cube container.
Asia-Latin America
Maersk announced a rate increase of $500 per 20-foot container and $1,000 per 40-foot, 40-foot high-cube and 45-foot high-cube container on shipments from the Far East to the east coast of South America, excluding Pecem, Salvador, Suape, Vitoria and Manaus, Brazil, effective Jan. 4.
Hapag-Lloyd has scheduled a rate increase of $230 per TEU on cargo from Northwest India and Pakistan to Mexico, Central America, the west coast of South America, Panama and the Caribbean for Feb. 1.
Asia-North America
Evergreen intends to increase rates on cargo from the Far East, South Africa and the Middle East to the U.S., Puerto Rico and Canada, effective Jan. 15:
- From the Far East and South Africa to the U.S. and Puerto Rico, 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 container.
- From the Far East, the Middle East and South Africa to Canada, 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 container.
- From India, Sri Lanka, Pakistan and Bangladesh to Canada, the increase will be $260 per 20-foot container, $325 per 40-foot container, $366 per 40-foot high-cube container and $411 per 45-foot high-cube container.
The container line also intends to raise rates for shipments from India, Sri Lanka, Pakistan and Bangladesh to the U.S. and Puerto Rico by $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, starting Feb. 15.
In the opposite direction, Evergreen plans to boost rates for shipments from Canada and inland point intermodal points to the Far East by $80 per 20-foot container and $100 per 40-foot, 40-foot high-cube and 45-foot container, starting Feb. 1.
Additionally, Evergreen announced a rate hike for cargo from the U.S. and Puerto Rico to the Far East, effective Jan. 1:
- For shipments from the U.S. West Coast and East Coast, the increase will be $80 per 20-foot container and $100 per 40-foot, 40-foot high-cube and 45-foot high-cube container.
- For inland point intermodal shipments to the U.S. West Coast and East Coast, the increase will be $120 per 20-foot container and $150 per 40-foot, 40-foot high-cube and 45-foot high-cube container.
U.S. Lines said it will postpone a previously announced rate increase in its westbound trans-Pacific trade from Jan. 1 to Feb. 1:
- For shipments from or via the U.S. West Coast, East Coast and Gulf Coast, the hike will be $80 per 20-foot container and $100 per 40-foot and 45-foot container.
- For shipments from inland point locations via the U.S. West Coast, East Coast and Gulf Coast, the increase will be $120 per 20-foot container and $150 per 40-foot and 45-foot container.
The carrier also said it hopes to implement a rate increase on Feb. 1 for non-agricultural shipments in its westbound trans-Pacific trade on its Columbus PNW service to all destinations. The hike will only apply to dry cargo exports loading from Vancouver and inland terminal cargo. From Canada to all destinations, the increase will be $100 per 20-foot, 40-foot, 40-foot high-cube and 45-foot container.
Hapag-Lloyd intends to increase rates on its trade from India and Pakistan to the U.S. and Canada by $300 per 20-foot container, $375 per 40-foot container and $425 per 40-foot high-cube and reefer container, beginning Feb. 15.
Intra-Asia
CMA CGM announced a rate hike of $200 per 20-foot container, $300 per 40-foot and 40-foot high-cube container and $350 per 45-foot high-cube container on its trade from Asia to Sri Lanka, effective Jan. 1.
Hapag-Lloyd plans to boost rates on its trade from East Asia, excluding Japan, to the Persian Gulf and Red Sea, by $200 per TEU, starting Jan. 15.
On the same date, Cosco Container Lines intends to increase rates on its trade from the Far East to the Red Sea by $200 per TEU.
Competitive pressure has not reduced freight rates in the intra-Asia market in the last four years, and that is not expected to change substantially in 2014.
The Journal of Commerce
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