Evergreen Marine Corp. said Thursday it is raising its shipping rates on its European routes and will add surcharges during the current peak season amid strong demand.
The shipping company said the rates on its Europe- Mediterranean westward routes will be increased from July 1 by US$250 per twenty-foot equivalent unit (TEU) , a measurement for capacity of container transportation.
A peak season surcharge of US$300 per TEU will also be added to the rates on those routes, with effect from July 18, the company said.
"The demand for container transportation from Europe is on the rise -- the rate hikes just reflect the market reality, " an Evergreen Marine spokeswoman said.
Evergreen's main competitor Yang Ming Marine Transport Ltd. said it is also planning to raise the rates on its European shipping routes this month, but declined to give any further details.
Henry Miao, Vice President of Hua Nan Securities, said demand for container shipping space has exceeded supply as a weaker euro has been spurring demand for products from the eurozone.
"With the approach of the Christmas season, there has been a very obvious increase in demand for cargo transportation on the European routes," Miao said.
He said exporters are competing for container space so that they could make their deliveries on time.
"It is therefore no surprise that the shippers have increased their rates,"Miao added.
Apart from the European routes, the world's shipping industry is benefiting from a recovering global economy, Miao said.
"Strong demand for cargo transportation worldwide is likely to continue into the third quarter," he forecast.
The shipping company said the rates on its Europe- Mediterranean westward routes will be increased from July 1 by US$250 per twenty-foot equivalent unit (TEU) , a measurement for capacity of container transportation.
A peak season surcharge of US$300 per TEU will also be added to the rates on those routes, with effect from July 18, the company said.
"The demand for container transportation from Europe is on the rise -- the rate hikes just reflect the market reality, " an Evergreen Marine spokeswoman said.
Evergreen's main competitor Yang Ming Marine Transport Ltd. said it is also planning to raise the rates on its European shipping routes this month, but declined to give any further details.
Henry Miao, Vice President of Hua Nan Securities, said demand for container shipping space has exceeded supply as a weaker euro has been spurring demand for products from the eurozone.
"With the approach of the Christmas season, there has been a very obvious increase in demand for cargo transportation on the European routes," Miao said.
He said exporters are competing for container space so that they could make their deliveries on time.
"It is therefore no surprise that the shippers have increased their rates,"Miao added.
Apart from the European routes, the world's shipping industry is benefiting from a recovering global economy, Miao said.
"Strong demand for cargo transportation worldwide is likely to continue into the third quarter," he forecast.