Container carriers delay Asia-Europe rate hikes as spot market weakens
MAERSK Line and other ocean carriers have postponed planned Asia-Europe general rate increases that were due to take effect on April 15 after a slide in the spot market, according to Lloyd's Loading List.
But shippers have been advised that lines will be seeking another round of rate increases on May 1.
Lars Mikael Jensen, Maersk Line's head of Asia-Europe trades, said the Danish line had decided to delay the latest US$500 per TEU general rate increase (GRI) for a fortnight to avoid being out of step with the rest of the market.
But trade fundamentals do not appear to have shifted significantly, he told London's Containerisation International, with supply and demand conditions largely unchanged.
"We don't see any fundamental increase in capacity... and utilisation levels are above 90 per cent," said Mr Jensen.
Volumes to eastern Mediterranean destinations are recovering after last year's slump while the eastern European trades are strong. In contrast, volumes to the big markets such as the UK are broadly flat. Most lines had been intending to bring in another GRI of $500 per TEU following similar-sized upward adjustments levied in mid-March.
Hapag-Lloyd had also told customers it planned to follow a $500 per TEU April 15 increase with another of $500 on May 13. However, the German line has also decided to drop the April increase and postpone another rate restoration effort until mid-May.
The latest figures from the Shanghai Containerised Freight Index show that spot prices on services from Asia to Europe dropped $130 per TEU week-on-week to hit $940 per TEU. Meanwhile, spot prices on services from Asia to the Mediterranean declined $118 to $955 per TEU.
MAERSK Line and other ocean carriers have postponed planned Asia-Europe general rate increases that were due to take effect on April 15 after a slide in the spot market, according to Lloyd's Loading List.
But shippers have been advised that lines will be seeking another round of rate increases on May 1.
Lars Mikael Jensen, Maersk Line's head of Asia-Europe trades, said the Danish line had decided to delay the latest US$500 per TEU general rate increase (GRI) for a fortnight to avoid being out of step with the rest of the market.
But trade fundamentals do not appear to have shifted significantly, he told London's Containerisation International, with supply and demand conditions largely unchanged.
"We don't see any fundamental increase in capacity... and utilisation levels are above 90 per cent," said Mr Jensen.
Volumes to eastern Mediterranean destinations are recovering after last year's slump while the eastern European trades are strong. In contrast, volumes to the big markets such as the UK are broadly flat. Most lines had been intending to bring in another GRI of $500 per TEU following similar-sized upward adjustments levied in mid-March.
Hapag-Lloyd had also told customers it planned to follow a $500 per TEU April 15 increase with another of $500 on May 13. However, the German line has also decided to drop the April increase and postpone another rate restoration effort until mid-May.
The latest figures from the Shanghai Containerised Freight Index show that spot prices on services from Asia to Europe dropped $130 per TEU week-on-week to hit $940 per TEU. Meanwhile, spot prices on services from Asia to the Mediterranean declined $118 to $955 per TEU.