THE world's largest container shipping company, Maersk Line, has announced a general rate hike for export cargo from the United States and Canada, effective July 1.
Rate increases per TEU will range from US$120 to $400 depending on the destination and trade route. For an FEU, high-cube and 45-footers, increases will range from $150 to $400 per box. Refrigerated cargo, shipped in 40' high-cube refrigerated containers will sustain a $500 per container increase for most commodities, with minor differences from Canada.
In a related development, the new Maersk Line Bunker Adjustment Factor (BAF) will take effect in the transatlantic trades from July 1.
From this date the BAF for both dry and refrigerated containers will be as follows: transatlantic-eastbound $115 per TEU and $230 per FEU; transatlantic-westbound $140/TEU and $280/FEU; transatlantic-eastbound (origin US west coast only) $170/TEU and $340/FEU; and transatlantic-westbound (destination US west coast only) $210/TEU and $420/FEU.
The Danish shipping giant cited increasing costs associated with the growing North American export trade, rising fuel prices and the weak US dollar as reasons behind the rate hike.
The rate increase will affect trade routes for the transatlantic (ATL), Mediterranean (MED) and Middle East Container Line (MECL) for dry commodities, excluding military shipments.
In addition, a general rate increase will impact refrigerated cargo destined to all ports in the Far East, Middle East, Mediterranean, Black Sea, North Europe and the Baltic Region (excluding fruit, fresh produce and Alaska origin cargo), effective July 1.
"The weak dollar has driven export volume to surge 22 per cent since last year," said a company statement. "The significant demand for agricultural products by global markets translates into equipment demand in the US heartland. High fuel costs and equipment repositioning expenses are required to move the empty containers from the coastal port and metropolitan areas where the imports are received."
Rate increases per TEU will range from US$120 to $400 depending on the destination and trade route. For an FEU, high-cube and 45-footers, increases will range from $150 to $400 per box. Refrigerated cargo, shipped in 40' high-cube refrigerated containers will sustain a $500 per container increase for most commodities, with minor differences from Canada.
In a related development, the new Maersk Line Bunker Adjustment Factor (BAF) will take effect in the transatlantic trades from July 1.
From this date the BAF for both dry and refrigerated containers will be as follows: transatlantic-eastbound $115 per TEU and $230 per FEU; transatlantic-westbound $140/TEU and $280/FEU; transatlantic-eastbound (origin US west coast only) $170/TEU and $340/FEU; and transatlantic-westbound (destination US west coast only) $210/TEU and $420/FEU.
The Danish shipping giant cited increasing costs associated with the growing North American export trade, rising fuel prices and the weak US dollar as reasons behind the rate hike.
The rate increase will affect trade routes for the transatlantic (ATL), Mediterranean (MED) and Middle East Container Line (MECL) for dry commodities, excluding military shipments.
In addition, a general rate increase will impact refrigerated cargo destined to all ports in the Far East, Middle East, Mediterranean, Black Sea, North Europe and the Baltic Region (excluding fruit, fresh produce and Alaska origin cargo), effective July 1.
"The weak dollar has driven export volume to surge 22 per cent since last year," said a company statement. "The significant demand for agricultural products by global markets translates into equipment demand in the US heartland. High fuel costs and equipment repositioning expenses are required to move the empty containers from the coastal port and metropolitan areas where the imports are received."