Lines bemoan Asia-Europe dynamics, seek rate hikes

   More liner carriers are planning rate hikes on the Asia-Europe after industry leader Maersk Line said earlier this week it would seek to hike rates by $775 per TEU from March.
   Hanjin Shipping said Thursday it will increase rates by $700 per TEU from Asia to Northern Europe and the Mediterranean from March 1 (from Japan, the increase is applicable from April 1). The line also said it would increase rates from the Indian Subcontinent to Northern Europe by $300 per TEU on the same date.
   Last week Hapag-Lloyd said it would seek an increase of $750 per TEU on the trade (excluding origins from Japan).
   Finally, CMA CGM said Wednesday it would seek additional revenue of $750 per TEU from Asia to Europe from March 1 – $200 via a rate increase and $550 through an interim fuel surcharge. CMA CGM said the interim fuel surcharge will vary proportionally to the company’s bunker adjustment factor on a monthly basis.
   “In 2011, the unprecedented decrease of freight rates coupled with the sharp increase of bunkers and with the deterioration of operational conditions in Asia has severely impacted the results of all carriers operating on the Asia to Europe Trade,” CMA CGM said in a statement. “The tendency to quote ‘all-in’ rates, including surcharges such as BAF, CAF, Aden Gulf surcharge, Suez Surcharge, and CSF, has left carriers without any proper coverage of these costs.
   “Besides, the adverse weather conditions (the six main ports of central and north China have been closed for 331 days in 2011 because of extreme weather conditions) and the decrease of productivity in some Asian ports due to an emerging congestion have forced carriers to speed up vessels on the westbound leg to meet berthing windows in Europe and Suez Canal convoys,” the French carrier explained. “Because of transit time and schedule reliability constraints, bunker consumption has increased at the worst moment, offsetting completely the benefits of slow steaming on the eastbound leg. The present level of freight rates is insufficient to cover ships costs including port and Suez Canal costs as well as bunkers costs.” — Eric Johnson