Neptune Orient Lines (NOL) , the world's seventh largest shipping company, said its container arm APL is planning to raise freight rates on Asia-Europe trade routes starting next month.
APL said it will raise its eastbound Europe to Asia leg by $100 per container for scrap commodities such as paper, while the westbound Asia to Europe trade lane will see a rise of $300 per twenty-foot container for all freight to the Mediterranean and North Europe.
The industry has been facing slumping demand that has forced operators including NOL to reduce capacity, though policymakers have recently pointed to some signs of stabilisation in the world economy and economists are looking at shipping trade as an indicator.
'Despite the relative success of initiatives we implemented earlier this year, rates in the Asia-Europe trade are not even close to sustainable levels. We will be doing everything possible to ensure the latest rises are upheld,' said Detlev Kerber, APL's vice-president for Asia-Europe trade.
NOL reported a worse-than-expected first quarter loss of $245 million. It has seen its cargo volume slide by 26 percent from the start of the year until May 1 compared to a year ago, while average revenue per forty-foot container dropped 17 percent in this period.
APL said it will raise its eastbound Europe to Asia leg by $100 per container for scrap commodities such as paper, while the westbound Asia to Europe trade lane will see a rise of $300 per twenty-foot container for all freight to the Mediterranean and North Europe.
The industry has been facing slumping demand that has forced operators including NOL to reduce capacity, though policymakers have recently pointed to some signs of stabilisation in the world economy and economists are looking at shipping trade as an indicator.
'Despite the relative success of initiatives we implemented earlier this year, rates in the Asia-Europe trade are not even close to sustainable levels. We will be doing everything possible to ensure the latest rises are upheld,' said Detlev Kerber, APL's vice-president for Asia-Europe trade.
NOL reported a worse-than-expected first quarter loss of $245 million. It has seen its cargo volume slide by 26 percent from the start of the year until May 1 compared to a year ago, while average revenue per forty-foot container dropped 17 percent in this period.