Hanjin Shipping plans to increase freight rates as of May 15 on the Asia-Europe trade lanes.
Those trade lanes have been hit by sliding rates since the beginning of the year, with the spot index for shipping containers from Shanghai to Europe slipping below $1,000 per 20-foot equivalent unit last month on fears of vessel overcapacity.
The South Korean carrier said Thursday the rate increases are necessary "to maintain service quality and schedule reliability in the midst of hiking operation expenses."
Hanjin said it will increase rates by $200 per TEU and $400 per 40-foot equivalent unit on all dry and reefer cargo shipped from the Far East (excluding Japan) to Northern Europe and the Mediterranean.
It will raise rates by $150 per TEU and $300 per FEU on dry and reefer cargo shipped to Northern Europe and the Mediterranean from Southeast Asia, the Middle East and the Indian subcontinent.