China Shipping Container Lines Co., the nation’s second-largest cargo-box carrier, plans to raise rates for hauling goods to the U.S. by as much as $700 per 40- foot box as it seeks to return to profit. The company will raise Asia-U.S. rates on the containers by $300 on Jan. 1, Frank Fan, head of investor relations, said in a phone interview today. The Shanghai-based shipping line will boost rates by an additional $400, along with members of the Transpacific Stabilization Agreement, on Jan. 15, he said.
Container lines aim to increase fees in 2010 after a global recession led to at least $20 billion in estimated losses in 2009, according to the Transpacific Stabilization Agreement, a group of 14 shipping lines. China Shipping Container also raised Asia-Europe rates by $150 per 40-foot box on Dec. 15.
“The increase is a bit bigger than what’s reasonable,” said Jack Xu, an analyst at Sinopac Securities Co. in Shanghai. “It’s challenging the peak levy imposed in 2007, while the demand hasn’t recovered to that level.”
China Shipping Container fell 0.4 percent to HK$2.72 in Hong Kong trading today. The stock has more than doubled this year.
Container lines aim to increase fees in 2010 after a global recession led to at least $20 billion in estimated losses in 2009, according to the Transpacific Stabilization Agreement, a group of 14 shipping lines. China Shipping Container also raised Asia-Europe rates by $150 per 40-foot box on Dec. 15.
“The increase is a bit bigger than what’s reasonable,” said Jack Xu, an analyst at Sinopac Securities Co. in Shanghai. “It’s challenging the peak levy imposed in 2007, while the demand hasn’t recovered to that level.”
China Shipping Container fell 0.4 percent to HK$2.72 in Hong Kong trading today. The stock has more than doubled this year.