Carriers report further rate increases

Carriers report further rate increases    Operating data published by several stockmarket-listed container-shipping companies confirms that container freight rates continued to increase in the second quarter and first half of this year, continuing a trend of rate inflation commenced more than a year ago.
   The figures incorporate a month of activity since the May 1 rate increases in the transpacific trade and reflect the recent wave of other rate hikes in most major trades.
   Royal P&O Nedlloyd, the Dutch parent company of P&O Nedlloyd Container Line, said today that average freight rate across all its trade routes was $1,393 per TEU in the second quarter, a 12-percent increase on the $1,247 average for the same quarter of 2003.
   For the first half of the year, P&O Nedlloyd’s average freight rate was up 13 percent to $1,384 per TEU from $1,224 a year ago. Broken down by region, the carrier’s average rate for the Americas (covering the transpacific, transatlantic and other North American trades) soared 16 percent to $1,559 per TEU from $1,346; the European trades (other than transatlantic) rose 13 percent to $1,399 per TEU.
   Hong Kong-based Orient Overseas (International) Ltd., parent company of Orient Overseas Container Line, reported earlier this week that its average revenue per TEU increased 5 percent in the second quarter to $1,063. In the transpacific trade, OOCL’s average revenue per TEU was up 6 percent to $1,534. In the Atlantic trade, the carrier’s revenue per unit increased 2 percent to $1,263. In the Asia/Europe trade, the carrier's average rate rose 4 percent to $1,358 per TEU. The carrier did not give a breakdown of freight rates by direction.
   Neptune Orient Line, parent of APL, said its average revenue per 40-foot equivalent unit increased 4 percent in the second quarter to $2,630, equivalent to $1,315 per TEU. Increases occurred in all of APL’s three regions. In the Americas, the average revenue per FEU increased 4 percent to $3,278. In Europe, average revenue rose 5 percent to $2,486 per FEU. In the Asia/Middle East region, average revenue jumped 15 percent to $1,756 per FEU.