Dear Customer,

 

Market and Rate Developments from Asia to Europe

 

The Container Shipping industry has been going through an extremely volatile period driven by some key elements:

A rise in costs, primarily driven by the increase in fuel prices

A seasonal fall in demand for space on ships from Asia to Europe primarily driven by the difficult trading conditions in the European economy.

Pricing policies which are unsustainable and New Ship launches which have further destabilised the Supply and Demand balance.

 

Consequently almost all shipping lines have taken the step of announcing significant rate increases effective 1^st March.

 

 

 

 

APL                        USD 750 per 20’                USD 1500 per 40’              Effective 1^st March

China Shipping  USD 750 per 20’                USD 1500 per 40’              Effective 1^st March

CMA                      USD 750 per 20’                USD 1500 per 40’              Effective 1^st March

Cosco                    USD 300 per 20’                USD 600 per 40’                Effective 1^st March

                                USD 300 per 20’                USD 600 per 40’                Effective 1^st April

Evergreen           USD 600 per 20’                USD 1200 per 40’              Effective 1^st March

                                USD 300 per 20’                USD 600 per 40’                Effective 1^st April

Hanjin                   USD 700 per 20’                USD 1400 per 40’              Effective 1^st March

Hapag Lloyd        USD 750 per 20’                USD 1500 per 40’              Effective 1^st March

Hyundai               USD 700 per 20’                USD 1400 per 40’              Effective 1^st March

K Line                    USD 725 per 20’                USD 1450 per 40’              Effective 1^st March

Maersk Line       USD 775 per 20’                USD 1550 per 40’              Effective 1^st March

MSC                       USD 750 per 20’                USD 1050 per 40’              Effective 1^st March

MOL                      USD 750 per 20’                USD 1500 per 40’              Effective 1^st March

NYK                        USD 650 per 20’                USD 1300 per 40’              Effective 1^st March

 

Given the financial position of all shipping lines, who are running at a loss, there is a determination by the Lines to make these stick. We have seen announcements of rate increases before which have fallen considerably between announcement and effective dates. Presently however the position of the Shipping Lines is resolute.

As we approach the 1^st March effective date we will keep you fully informed of market developments.