Maersk Sticks to Trans-Atlantic Rate Hikes

Maersk Line said it will implement previously announced rate hikes on the trans-Atlantic trades in the second half of the year despite a recent improvement in market conditions.

Rates will rise by $400 per 20-foot dry and reefer container and by $500 for 40-foot boxes from July 1, the Danish ocean carrier said.

Rates have improved this year but are still unsatisfactory and carriers face extra costs due to a shortage of containers, Maersk said.

The higher rates will apply to cargo moving in both directions between North America and Europe, the Mediterranean and the Black Sea.

The dollar amount of the General Rate Increase planned for Oct. 1 will depend on the trading conditions in the second half of the year.

"Based on the dynamic market conditions experienced so far in 2010 we are pleased to see a degree of stabilization with partial freight rate recovery," Maersk said.

But it is "re-announcing" rate increases originally unveiled at the end of December because "Trans-Atlantic trading conditions are still subject to unsatisfactory rate levels that has now been further aggravated by a general shortage of containers resulting in higher cost associated with positioning containers to where our customers need them for export."

"The situation remains unsustainable in the longer run. Rate increases are therefore necessary to continue to operate our services with the high level of reliability we wish to offer our customers."

-- Contact Bruce Barnard at brucebarnard47@hotmail.com.