DANISH carrier Maersk Line has stood by its decision to increase a reefer rate 30 per cent to US$1,500/FEU as of January 1 in an effort to restore financial returns.
The carrier is prepared to lose business - and market share - to implement this rate hike, said Maersk Line CEO Soren Skou, reports Lloyd's Loading List.
But Newark's Journal of Commerce reports that Maersk Line is having mixed results in its attempt to raise reefer container rates, with actual price gains varying by commodity and lane, according to one analyst.
The Danish shipping giant has decided to do a flat rate increase across all lanes on reefer shipments unlike other carriers which have implemented varying increases by trade lane.
Beef, poultry and pork shipper JBS logistics chief Fred Cox said the blanket increase needs to be more refined. "This should be lane specific and not across the board. We don't want to be doing brain surgery with oven mitts on," he said, reported Hong Kong's Cargonews Asia.
This will support its aim to see an investment return level of at least 10 per cent against last year's 2.4 per cent and 3.1 per cent down in 2011.
The move has resulted in reefer customers fighting hard against rate increases, but "we cannot continue to improve the level of service and invest in the equipment we have to grow", said Mr Skou at the Trans-Pacific Maritime conference.
It is to hold on investments in the future with a block on orders of new refrigerated containers.
MARKETS
07 March 2013 - 20:30
Maersk big reefer $1,500 rate hike to stick despite market share loss
DANISH carrier Maersk Line has stood by its decision to increase a reefer rate 30 per cent to US$1,500/FEU as of January 1
MARKETS
07 March 2013 - 20:30
Maersk big reefer $1,500 rate hike to stick despite market share loss
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