Maersk Line raises trans-Atlantic container rates
Maersk Line, the world's biggest container shipper, will raise rates on trans-Atlantic routes as the freefall in cargo volumes has come to a halt, signalling that the worst of the economic crisis might be over.
Maersk Line is part of Denmark-based shipping and oil group A.P. Moller-Maersk .
"We have definitely seen the bottom in these trades," Soren Castbak, senior director of Maersk Line's Atlantic services, told Reuters, referring to routes between Europe and North America.
Measured by container volumes, demand for shipping on these routes fell by 25 percent in the past 12 months. The industry's initial response has been to reduce capacity by about one-fifth, Castbak said by telephone.
"I don't think that we will see a big return of trades in 2010, it will probably remain at present levels," he said.
On Monday, Vincent Clerc, vice-president for Maersk Line's European business, said the company had seen a 25 percent drop in the Asia-Europe trade this year and expected a gradual recovery in a range of 3 to 5 percent in 2010. [ID:nLJ96630]
Castbak said the trans-Atlatic market had now stabilised sufficiently for it to make sense for Maersk Line to prepare clients, many of whom are preparing 2010 budgets, for rate increases due to take effect next year.
The trans-Atlantic rate increases announced by Maersk Line on Wednesday were $400 for 20-foot containers and $500 for 40-foot containers.
Because current rates vary widely depending on shipping corridor and commodity, it was not meaningful to estimate how much the increase would be in percentage, he said.
"In general rates have fallen in the past 12 months. Rates are now so low that is is not possible to run a sustainable service. We are simply restoring them to previous, sustainable levels," Castbak said.
Maersk Line is part of Denmark-based shipping and oil group A.P. Moller-Maersk .
"We have definitely seen the bottom in these trades," Soren Castbak, senior director of Maersk Line's Atlantic services, told Reuters, referring to routes between Europe and North America.
Measured by container volumes, demand for shipping on these routes fell by 25 percent in the past 12 months. The industry's initial response has been to reduce capacity by about one-fifth, Castbak said by telephone.
"I don't think that we will see a big return of trades in 2010, it will probably remain at present levels," he said.
On Monday, Vincent Clerc, vice-president for Maersk Line's European business, said the company had seen a 25 percent drop in the Asia-Europe trade this year and expected a gradual recovery in a range of 3 to 5 percent in 2010. [ID:nLJ96630]
Castbak said the trans-Atlatic market had now stabilised sufficiently for it to make sense for Maersk Line to prepare clients, many of whom are preparing 2010 budgets, for rate increases due to take effect next year.
The trans-Atlantic rate increases announced by Maersk Line on Wednesday were $400 for 20-foot containers and $500 for 40-foot containers.
Because current rates vary widely depending on shipping corridor and commodity, it was not meaningful to estimate how much the increase would be in percentage, he said.
"In general rates have fallen in the past 12 months. Rates are now so low that is is not possible to run a sustainable service. We are simply restoring them to previous, sustainable levels," Castbak said.