Multiple carriers have planned rate increases in various trade lanes in April and May, although any gains achieved could be fleeting as overcapacity and lackluster global demand continues.
However, according to investment firm Jefferies, the container shipping industry’s supply and demand gap is narrowing this year, which will help carriers improve profitability. Furthermore, as carriers head into the rate-negotiation season after a difficult fall of 2013, they may be able to negotiate modest contract rate increases on the trans-Pacific, according to Esben Christensen, director of global maritime practice at AlixPartners.
Maersk Line plans to implement a general rate increase of $650 per 20-foot container and $1,300 per 40-foot and 45-foot container on its trade from the Far East, excluding Japan, to the Mediterranean, excluding Syria, effective April 1. For shipments to Syria, the hike will be $500 per 20-foot container and $1,000 per 40-foot and 45-foot container.
CMA CGM aims to increase rates on its trade from India, Pakistan and Sri Lanka to North Europe, Scandinavia, the Mediterranean, Baltic, Black Sea, North Africa, Central America, the Caribbean and South America by $200 per 20-foot container and $300 per 40-foot container, starting April 15.
CMA CGM has proposed a rate hike of $250 per TEU on shipments from Asia, including Japan, Southeast Asia and Bangladesh, to West Africa, beginning May 1.
On the same date, Mediterranean Shipping Co. will try to implement a rate hike of $250 per 20-foot container and $500 per 40-foot container on cargo from the Far East to West Africa and Angola.
MSC and Cosco Container Lines both plan to raise rates on shipments from Asia to South America’s east coast, starting April 15. The increase will be $600 per 20-foot container and $1,200 per 40-foot container.
CMA CGM hopes to boost rates on cargo from Asia, including Japan, Southeast Asia and Bangladesh, to Red Sea ports, effective April 1. For cargo to Jeddah, Saudi Arabia, the hike will be $200 per TEU, and for shipments to Ain Sukhna, Egypt; Aqaba, Jordan; Djibouti; Port Sudan; and Aden and Al Hudaydah, Yemen, the increase will be $300 per TEU.
Hapag-Lloyd has scheduled a rate hike of $200 per TEU on shipments from East Asia, excluding Japan, to the Persian Gulf, starting April 15.
MSC hopes to boost rates on cargo from Greece; Turkey; east Mediterranean, excluding Israel; and the Black Sea to the U.S., effective May 1. The increase will be $200 per 20-foot container and $300 per 40-foot container.
Three container lines have planned rate hikes of $175 per 20-foot container and $350 per 40-foot container, beginning May 1:
- Hapag-Lloyd intends to raise rates on its trade from the U.S. to Australia and New Zealand.
- MSC plans to boost rates on shipments from the U.S. East Coast to Australia, New Zealand and New Caledonia. The GRI replaces MSC’s previous announcement that this rate hike would take effect on April 1.
- U.S. Lines aims to raise rates on cargo from the U.S. East Coast to Australia and New Zealand.