Multiple carriers have planned rate increases in various trade lanes in April and May, although any gains achieved could be fleeting as overcapacity and lackluster global demand continues.
While general rate increases achieving 75 percent of the intended increase are regarded as acceptable by the carriers, industry observers say even that will be difficult to sustain. Freight rate volatility is expected to remain a driving force in 2014, according to SeaIntel.
However, the container shipping industry’s supply and demand gap is narrowing this year, according to investment firm Jefferies, which could help carriers improve their cost-effectiveness. As the rate-negotiation seasons begins following a difficult fall of 2013, carriers may be able to negotiate modest contract rate increases on the trans-Pacific, according to Esben Christensen, director of global maritime practice at AlixPartners.
Asia-Europe
Mitsui O.S.K. Lines (MOL) hopes to implement a GRI of $100 per 20-foot container and $200 per 40-foot container on its trade from North Europe and the Mediterranean to Asia, effective May 1.
Starting May 8, Hapag-Lloyd intends to boost rates on westbound and eastbound shipments between Asia and Europe:
- For westbound shipments from the Far East, excluding Japan, to North Europe and the Mediterranean, the hike will be $525 per TEU.
- For eastbound shipments from North Europe and the Mediterranean to the Far East, including Japan, as well as the Indian subcontinent and Middle East, the increase will be $100 per TEU.
Asia-Africa
Maersk Line hopes to increase rates on cargo from West and Central Asia to Djibouti and Ethiopia by $100 per 20-foot container and $200 per 40-foot and 40-foot high-cube container, effective April 15. In addition, for shipments to Sudan, the hike will be $75 per 20-foot container and $150 per 40-foot and 40-foot high-cube container.
Maersk aims to implement a rate increase on its trade from the Far East to West Africa, effective May 1. The hike will be $250 per 20-foot container and $500 per 40-foot and 40-foot high-cube container.
Asia-Latin America
Two carriers plan to implement rate increases on April 15:
- Maersk hopes to hike rates on shipments from the Far East, excluding Japan, to the east coast of South America by $750 per 20-foot container and $1,500 per 40-foot, 40-foot high-cube and 45-foot high-cube container.
- NYK Line has announced a rate hike of $600 per 20-foot container for shipments from north and south Asia, India, the Indian subcontinent and Oceania to the east coast of South America.
Asia-Oceania
Maersk intends to boost rates on trade from the Far East and Indian subcontinent to Papua New Guinea by $250 per 20-foot container and $500 per 40-foot, 40-foot high-cube and 45-foot high-cube container, beginning May 1.
Intra-Asia
Maersk plans to increase rates on cargo from the Far East to the Indian subcontinent by $200 per TEU and FEU, effective April 15.
On the same date, the container line also hopes to raise rates on trade from the Far East to the Persian Gulf and Red Sea. For shipments to the Persian Gulf, the hike will be $200 per 20-foot container and $300 per 40-foot container, and for shipments to the Red Sea, the hike will be $300 per 20-foot container and $600 per 40-foot container.
The Journal of Commerce
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