CMA CGM hikes Asia-Europe rates
CMA CGM today announced a series of rate increases on the Asia-Europe trade lane, where carriers have been losing money on every trip since last winter because of rock-bottom freight rates.
The increases apply to the base freight rate, the bunker surcharge and possibly to peak season rates.
The French carrier’s move follows similar steps by Maersk Line and other major carriers on that route. The carriers believe they have cut capacity on the trade lane enough that the rate increases will begin to stick.
CMA CGM said it is increasing rates by $300 per TEU on all cargo and commodities moving westbound to Europe as of July 1.
It also will begin invoicing its shippers for a higher bunker adjustment factor separately from the freight rate. It said it has been constantly monitoring bunker prices and has published BAF level on its website and will increase the BAF on the Asia -Europe trade from $281 per TEU to $333 per TEU on July 1 to reflect the higher price of oil on the world market.
Finally, CMA CGM said it may also decide to implement a peak season surcharge on the same trade that would be applied as of Aug. 1.
The increases apply to the base freight rate, the bunker surcharge and possibly to peak season rates.
The French carrier’s move follows similar steps by Maersk Line and other major carriers on that route. The carriers believe they have cut capacity on the trade lane enough that the rate increases will begin to stick.
CMA CGM said it is increasing rates by $300 per TEU on all cargo and commodities moving westbound to Europe as of July 1.
It also will begin invoicing its shippers for a higher bunker adjustment factor separately from the freight rate. It said it has been constantly monitoring bunker prices and has published BAF level on its website and will increase the BAF on the Asia -Europe trade from $281 per TEU to $333 per TEU on July 1 to reflect the higher price of oil on the world market.
Finally, CMA CGM said it may also decide to implement a peak season surcharge on the same trade that would be applied as of Aug. 1.