Major Shipping Container Lines Announce Increase in TEU Rates

Among other Shipping industry leaders, Hapag-Lloyd has announced that they will be pushing through a rate increase, on westbound services from Asia. The company has said that the increases would be equivalent to US$750, or approximately a 50 per cent rise in the cost of shipping a 20-foot container from Shanghai to Europe, based on current spot freight rates.

It has also been reported that Orient Overseas Container Line (OOCL), the Tung family-controlled shipping company, became the latest shipping container line to confirm rate rises on the Asia-Europe-Middle East route. The carrier recently announced a US$700 per TEU (20-foot equivalent unit) increase on westbound services from Asia and India to Europe and the Mediterranean, beginning March 15, 2013. It has also been said that OOCL is seeking a US$500 per TEU rise on refrigerated containers, transported on routes from Asia to the Middle East. This followed the company's already confirmed increases on Europe-Asia shipments of US$200 per TEU and US$300 per FEU (40-foot equivalent unit) which began March 1.

Aside from Hapag-Lloyd and OOCL, Maersk and Cosco Container Lines, have also confirmed their intention to raise shipping rates in mid-March as well. Cosco for one, has openly stated that it intends to implement a US$775 per TEU increase on shipments to Europe and the Mediterranean, with rises on other services from Asia. Maersk on the other hand has said it intends to apply only a US$600 per TEU increase, making it the lowest rate increase among industry leaders.


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