Hanjin Shipping joined other carriers on Friday in announcing a second round of freight rate increases on its westbound Asia-Europe service, this time as of April 1.
The Korean carrier said it will raise its rates by $400 per 20-foot equivalent units and $800 per 40-foot equivalent unit on dry, reefrigerated and special containers moving from the Far East and Southeast Asia to Northern Europe, the Baltic and Scandinavia.
Hanjin will boost rates on cargo moving from Japan to Northern Europe, the Baltic, Scandinavia and the Mediterranean by $700 per TEU and $1,400 per FEU.
The increases will come a month after the March 1 increases implemented on its Asia-Europe trade this week of $700 per TEU and $1,400 per FEU. The March 1 increases by Hanjin and other major carriers led to an 114 percent spike in Asia-Europe spot rates on Thursday as measured by the World Container Index on March 1.
Hanjin’s announcement of a second increase as of April 1 increases follows similar announcements by Maersk Line and Mediterranean Shipping.
“The fact that Maersk has just announced another $400-per-TEU GRI for April 1 suggests that the supply/demand fundamentals are not quite there for March and that the earlier GRI attempt might not be totally successful,” said Neil Dekker, head of Drewry’s container research.
Carriers have been losing money on the Asia-Europe trade because of severe vessel overcapacity and low demand that have caused freight rates to plunge in the last year.