Weak dollar prompts higher currency charge in Canada/Europe trade
The four conferences in the eastbound and westbound liner trades between Canada and northern Europe have announced an increase in their joint currency adjustment factors to 9 percent, effective Feb. 1.
The charge will replace the existing currency adjustment factor of 6 percent, and reflects the depreciation of the U.S. dollar against other currencies.
“The U.S. dollar, compared to the euro and the Canadian dollar, has fallen over 19 percent in the past 12 months,” the conferences said in a joint statement. They added that the British Pound has also appreciated by 10 percent against the U.S. dollar.
“The fact that the U.S. dollar continues to fall to record low levels is a major concern and is having a serious financial impact on the conference lines,” the conferences said.
The conferences concerned are the Canadian North Atlantic Westbound Freight Conference, Continental Canadian Westbound Freight Conference, Canada-United Kingdom Freight Conference and Canadian Continental Eastbound Freight Conference.
They said that their carrier members’ cost increases or revenue losses are unavoidable, and the member lines “need to pursue a currency adjustment surcharge to recover revenues that have been lost due to the weakening of the U.S. dollar.”
The carriers of the Canada/northern Europe conference are Canada Maritime, Cast, Hapag-Lloyd and Orient Overseas Container Line.