Orient Overseas Container Line said it will seek a rate increase of $200 per 20-foot container of dry cargo on its service from Asia to North Europe as of April 8. It called the tariff rate increase the “first measure towards the restoration of a sustainable level of freight rates.”
The Hong Kong-based carrier said further tariff increases “would be necessary to maintain the integrity of the supply chain.”
The move follows similar increases to Asia-Europe rates announced in the last week by a number of major carriers, including APL, Maersk Line, CMA CGM and Hapag-Lloyd.
The global economic downturn and collapse of financial markets have led to a sharp decreased demand for container transportation services, OOCL said, that “has resulted in an extremely low level of freight rates across all trades, which can no longer cover basic operating or transportation costs.”
The Hong Kong-based carrier said further tariff increases “would be necessary to maintain the integrity of the supply chain.”
The move follows similar increases to Asia-Europe rates announced in the last week by a number of major carriers, including APL, Maersk Line, CMA CGM and Hapag-Lloyd.
The global economic downturn and collapse of financial markets have led to a sharp decreased demand for container transportation services, OOCL said, that “has resulted in an extremely low level of freight rates across all trades, which can no longer cover basic operating or transportation costs.”