OOCL will again raise North Europe-Asia rates
Orient Overseas (International) Ltd plans to raise rates again for container shipments for the North Europe-to-Asia route beginning June 15, the Hong Kong shipper said, as part of plans to boost profitability after its net profit plunged last year.
The shipper's container-freight unit Orient Overseas Container Line, or OOCL, said it plans to increase freight rates by US$200 per TEU and FEU for all shipments through the trade route, reported Dow Jones Newswires..
The latest rate increase comes after OOCL raised its freight rate for the same route by $200 per TEU or per FEU, starting Tuesday.
The container shipper didn't disclose its existing freight rate on its North-Europe-to-Asia route, but it noted the current freight rate is below the required level to cover its operating and transportation costs.
The company - controlled by the family of former Hong Kong chief executive Tung Chee-hwa - in March posted a 90 percent decline in 2011 net profit, as high fuel costs and capacity oversupply continued to weigh on its bottom line.