CMA CGM and Hapag-Lloyd to raise rates from December 1
Time：2015-11-13
Browse：68
CMA CGM announced a general rate increase on the Asia-North Europe route of US$950 per TEU starting from December 1, while Hapag-Lloyd is seeking an increase of $650 per TEU, effective from the same date, reported The Loadstar.
The string of failed GRIs was briefly interrupted at the beginning of November as rates rose by almost $1,000 per TEU - only to quickly contract by one-third of the increase as spot rates declined as carriers struggled to secure adequate cargo to fill their ships.
Third-quarter liftings dropped by seven per cent year on year to 3.8 million TEU, according to the latest data from Container Trades Statistics - a downturn that continued into October.
The strategy of ocean carriers to operate the world`s biggest containerships on the Asia-Europe route has contributed to an estimated nine per cent of extra cellular capacity.
Achieving the lowest unit cost - and thus higher profit margins - only works if the ultra-large vessels operating on the tradelane are sufficiently utilised. Filling the decks with spot cargo at less than $300 per TEU is not going to make for a profitable voyage, even for the carriers with the lowest unit costs.
There was no doubt in the mind of Maersk group chief executive Nils Andersen on Friday of where things had gone wrong for the ocean liner in the third quarter, forcing it to announce staff and service cuts and shelving ultra-large ship order options: it was all about rates, he said.