Shippers brace for rate hike
Exporters shipping goods from Hong Kong and other Asian ports to Europe and the Middle East face higher freight charges next month as container shipping lines attempt to boost revenue and profit despite lacklustre demand, reported the South China Morning Post.
The increases would be equivalent to a 50 percent surge in the cost of shipping a 20-foot container from Shanghai to Europe based on current spot freight rates.
The move comes as cargo owners are also seeing carriers plan a series of freight rate increases on routes from Asia to the United States in the next three months.
Orient Overseas Container Line, the Tung family-controlled shipping firm, became the latest box line to confirm rate rises on the Asia-Europe-Middle East trades in messages to customers at the end of last week.
The carrier is planning a US$700 per TEU increase on westbound services from Asia and India to Europe and the Mediterranean from March 15. It is also seeking a $500 per TEU rise on refrigerated container shipments from Asia to the Middle East.
OOCL had already confirmed increases on Europe-Asia shipments of $200 per TEU and $300 per FEU from March 1. Justifying these increases, the carrier said "ocean freight rates continue to be below the required level to cover basic operating costs or transportation costs".
Cosco Container Lines and other carriers, including European lines Maersk and Hapag-Lloyd, have confirmed their intention to raise rates from March 15. Coscon will implement a $775 per TEU increase on shipments to Europe and the Mediterranean with rises on other services from Asia, while Maersk has proposed a $600 per TEU rise and Hapag-Lloyd a $750 per TEU increase.
By comparison, the spot container rate from Shanghai to Europe stood at $1,301 per TEU last Friday, according to the Shanghai containerised freight index produced by the Shanghai Shipping Exchange. This was a week-on-week drop of 15 per cent to reflect falling demand caused by the approaching Lunar New Year holiday. The spot rate from Shanghai to the Mediterranean fell 20 per cent to $1,258 per TEU.
Peter Sand, chief shipping analyst with industry lobby group Bimco, thought it was likely that the rate increases in mid-March "will be somewhat successful".
He added: "It will pave the way for a rather decent average full-year rate level because it makes room for subsequent slides [in rates] throughout the year but at a safe distance from break-even levels."
Representatives for Hong Kong cargo owners were not available because of the Lunar New Year holiday.
Carriers are pushing through with the increases even though some are cutting services to cope with falling demand.
Maersk Line, the world's biggest container carrier which has about 20 per cent of the westbound Asia-Europe market, will extend the suspension of one of its 10 Asia-Europe services until April due to "declining demand on the Asia-Europe trade". This is in addition to the temporary cuts in mainland port calls as a result of the lack of shipments from China due to the Lunar New Year.
"The February and March suspension brings the total capacity reduction on [Maersk's] Asia-Europe network to 21 percent compared with February 2012," the carrier said.
Source: Cargonews Asia â€“ 15 February 2013
▪ Temporarily stop posting shipping news on Vietfracht website from September 01, 2013
▪ Shipping accidents up on higher traffic, worse weather
▪ Ships - our flexible friends
▪ Maritime Labour Convention 2006: Latest ratifications
▪ Pirates of the Southeast Asian Seas
▪ Lessening the burden of abandonment
▪ Changing Share of Coal Exporters to Asia
▪ (Watchkeeper) Professionalism the key to MLC success
▪ New Maritime Labour Convention: new golden era or false dawn?
▪ Global shipping industry sets sail under new standard
▪ Is methanol the future of maritime fuels?
▪ Watchkeeper - Time to speak about language
▪ Response to UK ratification of the Maritime Labour Convention
▪ Lloydâ€™s Register presents first Superintendent training program certificate
▪ Shipowners still looking for deals in newbuilding market
▪ Shipowners face expensive new regime over ballast water management
▪ Sea monsters - the world's biggest ships
▪ IBIA Hong Kong convention focuses on Asian growth
▪ Watchkeeper - What is an acceptable risk?
▪ Maguchi eyes investment opportunities in Binh Dinh
Jakarta port moves to ease congestion
▪ DHL launches India-Shanghai LCL service
▪ WATCHKEEPER - A TALE OF TWO TRANSPORT MODES
▪ BIMCO AND WORLD CUSTOMS' ORGANISATION STRENGTHENS TIES
▪ MOL launches iron ore carrier
▪ IMO circulars on radio communication and sludge tanks
▪ IMO - requirements for speed and log
▪ Westports IPO to benefit shareholders
▪ China lines drop Iran as US sanctions bite
▪ Shipping capacity growth breaks below 7%, first time since 2009
▪ Somalia in Talks With EU to Improve Maritime Security, Economy
▪ Vanguard adds Hanoi, Haiphong offices to network
▪ SINGAPORE: BUNKER SUPPLIERS FACTSHEETS
▪ Dry bulk fleet ship orders wonâ€™t be built in 2013
▪ Setting Port Priorities
▪ THE HUMAN COST OF PIRACY REMAINS HIGH
▪ Box throughput continues to rise at China ports
▪ MOL ship breaks up and drifts in Indian Ocean
▪ LNG Ship Rates Seen Unprofitable on Shorter Voyages, New Vessels
▪ Iron-Ore Ship Rates Gain Most in a Month as Fleet Growth Slows
▪ Coal trade saves the dry bulk market
▪ China firm to build Panama alternative
▪ EU NAVFOR DISRUPTS SOMALI PIRATE HIJACK OPERATION
▪ India Receives Its Largest Container Ship Call
▪ Canada's Biggest Ro-Ro Ship Launched in Germany
▪ Project Researches LNG Use in Canadaâ€™s Maritime Sector
▪ PROTECT YOURSELF AGAINST ATTACKS IN GULF OF GUINEA!
▪ WATCHKEEPER: THE ENVIRONMENT AND â€œMAKING A DIFFERENCEâ€
▪ DHL to invest $181m to boost Southeast Asia supply chain
▪ World Container Trade Fell in April
▪ Bigger is better for shipping sector
▪ Baltic index dragged down by weak panamax rates
▪ IMO Marine Environment Protection Committee includes Ro-Ro ships in the EEDI
▪ Baltic Exchange woos brokers with stock to up ship futures trade
▪ Yusen Logistics Expands Trans-Pacific LCL Services
▪ A costly lack of control
▪ IMO update and reminders
▪ China to invest more in Greek shipping
▪ MSC Belgium Introduces More Secure Container Release System
▪ Maersk Line decides to double rates from July 1
▪ Logwin upgrades Vietnam facilities
▪ Baltic Index Has Biggest Weekly Drop in Six as Ship Demand Slows
▪ Panamax coal freight rates to India pressured by oversupply of vessels
▪ Grain-Carrier Ship Rates Slide a 14th Day as Demand Seen Slowing
▪ LNG as bunker fuel only seen as long-term solution for shipping: Lloydâ€™s Register
▪ China Shipping orders five 18,400 TEU vessels
▪ Container tracking on the rise
▪ WTI Crude Falls a Second Day on Dollar Rally
▪ Large new builds prices rise higher in 2013, positive trend for shipping
▪ CARGO ALERT - BAGGED RICE CARGOES FROM THAILAND
▪ MOL to launch new Asia-Mexico service
▪ APL Changes Asia-North America Service
▪ ZIM adding Norfolk to Pacific service
▪ Container Ship Scrapping Heads for Record
▪ Kobe's Foreign Container Trade Dips
▪ Global container trade growth for 2013 revised down as market mood darkens
▪ Shipping should explore leasing solutions
▪ Singapore bunker suppliers conclude May ex-wharf term premiums at $5-7/mt
▪ Dimerco to launch new LTL service
▪ Container weighing - compression or tension?
▪ CSCL to order five 18,000-TEU ships from South Korea for Asia-Europe
▪ Evergreen Christens New 8,452-TEU Vessel
▪ MOL Expands Service to Kobe
▪ APL to Raise Intra-Asia Rates in April
▪ Singapore to simplify trade network
▪ Mitsui to buy Latvian port facilities operator
▪ US Ports Tighten Security After Boston Bombing
▪ BIMCO DISCUSSES FACILITATION OF MARITIME TRADE IN IMO
▪ 2013 VESSEL GENERAL PERMIT (VGP)
▪ U.S. Lines to Increase Asia-North America Rates
▪ MSC to Launch Asia-South America Service
▪ London P&I Club warns on bagged rice
▪ Cyprus: Shipping registry not affected by bank crisis
▪ Watchkeeper: Big ships- big salvage problems
▪ CMA CGM opens Baghdad dry port
▪ DP World posts record gain, 2012 net profit up 10pc, sales rise 5pc
▪ WHEN THE GPS GOES DOWNâ€¦
▪ Baltic Dry Index Rises a Fourth Week on South American Grains
▪ Is there a list of solid bulk cargoes that are â€œharmful to the marine environmentâ€?
▪ Top container maker sees profit dive by 48%
▪ IMSBC CODE CIRCULAR ON EXEMPTION OF CO2 FITTINGS FOR SOLID BULK CARGOES
▪ Maersk expects 11% capacity rise in 2013
▪ Pirates Release Chemical Tanker, Crew
▪ China exports much stronger than expected
▪ Containerships Opens Office in Ukraine
▪ Alphaliner: Record Ship Deliveries Scheduled This Year
▪ Mitsui bags contract for Jakarta port project
▪ Oil-Tanker Hire Costs Slide for Third Session as Demand Slows
▪ Poor 2012 first quarter drags NOL to $400M loss
▪ Cargo ship sinks off Japan
▪ Maersk Line recovery lifts profit of group
▪ ISPS CHARGES AT ABIDJAN
▪ WATCHKEEPER: LNG FUEL COMING OF AGE?
▪ Hamburg down 1% in 2012
▪ China Navigation Launches First S-Class Vessel
▪ Dubai port sets 100 million box record
▪ Suez Canal to raise fees from May
▪ Panamax coal freight rates weaker as grain activity slows
▪ BAD CONTRACTS MAKE BAD BUSINESS
▪ Vietnam's biggest port opens
▪ Cosco expects large 2012 loss
▪ Bulk-Ship Fleet Seen Expanding at Double the Pace of Demand
▪ China shipbuilding industry continues to drop this Year
▪ WATCHKEEPER: LEADERS ARE NOT BORN!
▪ 2013: The "Year of the Black Water Snake"
▪ Container cargo at Busan Port rises to record high
▪ Container Volume Slips 0.3 Percent at Antwerp
▪ PIRACY FALLS IN 2012, BUT SEAS OFF EAST AND WEST AFRICA REMAIN DANGEROUS
▪ Global Coal prices may remain low if Chinese coal production rises: Barclays
▪ Lloydâ€™s Register discovers means to improve the containers
▪ CMA CGM cuts sailings due to Chinese Lunar New Year
▪ Philippines' future as hub brightens further
▪ Port of Rotterdam bulk volumes decline
▪ Kerry sets up new joint venture in Vietnam
▪ Dragonair to launch Da Nang service
▪ MOL President Urges Cost Cuts
▪ Yang Ming to Charter Mega-Ships From Seaspan
▪ WATCHKEEPER: THE CASE FOR TRAINING SHIPS
▪ CMA CGM Plans Two Rounds of India, Pakistan Rate Hikes
▪ NATO Shipping Centre Warns of Piracy Activity in Mideast
▪ FEATURE: GATHER YOUR GOOD NEWS WHERE YOU MAY
▪ FEATURE: MLC â€œPAPER TIGERâ€ FEARS