ASIA/EUROPE CARRIERS IMPLEMENT RATE INCREASE
The Far Eastern Freight Conference of Asia/northern Europe shipping lines said carriers are implementing previously-announced rate increases in a continually strong market.
Senior executives met in London on Friday to assess market conditions in the eastbound and westbound Asia/northern Europe trades.
Carriers are “very confident” of securing the $350-per-TEU rate increase in the westbound direction on Aug. 1, said Vernon Rolls, manager of the Far Eastern Freight Conference.
In the first six months of the year, traffic volumes have increased by about 10 percent, both eastbound and westbound, compared to last year, he said. The 10-percent increase in demand compares with an increase of capacity this year of about 6 percent. At the beginning of the year, Asia/Europe carriers had expected growth rates of only 7 percent.
'Westbound vessel utilization is currently running at 98 percent, according to conference statistics.
The conference plans to raise eastbound rates to Asia on Oct. 1 by $250 per container.
The strength of the Asia/Europe trade is expected to boost the profit result of shipping lines on the trade route, thanks to larger volumes, higher freight rates and better levels of ship utilization.
The carriers of the FEFC are APL, CMA CGM, Hapag-Lloyd Container Line, Hyundai Merchant Marine, “K” Line, Maersk Sealand, Malaysia International Shipping Corp., Mitsui O.S.K. Lines, National Shipping Co. of Saudi Arabia, NYK, OOCL, P&O Nedlloyd, Senator Lines and Yangming Marine Transport. The FEFC shipping lines carry about 80 percent of the Asia/northern Europe container trade.