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Rate Increases

Transpacific Container Shipping Rate Soars

The Drewry Hong Kong-Los Angeles container rate benchmark, soared by 17.5% to US$2,452 per 40ft container this week. Last week’s Drewry transpacific price benchmark dated 1st August increased by just $71 per 40ft container from levels in the previous week, but it has now become clear that the rate increase was deferred by most carriers. “We said last week that one factor in the price changes was that carriers are staggering the implementation of this month’s GRI [General Rate Increase],” explained Martin Dixon, Drewry’s research manager for freight rate benchmarking. “What we now know is that the spot market has accepted the $500 rate increase over a period of 2 weeks, not one.” The latest $500 price increase ($429 this week and $71 last week) propelled spot freight rates from Hong Kong to Los Angeles to their highest level this year. This week’s $2,452 rate is 89% higher than this time last year. Perhaps more importantly, this was the 5th week-on-week rate increase of more than 10% this year. With transpacific capacity lower than a year ago and Asia-to-US volumes in July up by approximately 7%, the container market on the transpacific route appears to be much tighter than the Asia-Europe container trade. “The jump in rates and in volumes are there, but we have not changed our belief that freight rate levels will drift back downwards through the latter part of August,” Dixon warned


Global Shipping in Doldrums

Photo: Maersk Line

 Wells Fargo Securities says that headwinds face global shipping industry and the continued overcapacity means freight rate gains are less likely to stick.   "Given the continued overcapacity headwinds and easing containerized trade demand, we believe these freight rate gains are less likely to stick, and we expect rates to remain under pressure as we approach the slack winter season, particularly following a muted peak season," says a report from Wells Fargo Securities


Atlantic Container Rates To Soar

Starting next year, the price to ship a container across the Atlantic ocean is to soar, as container shipping lines on the Atlantic will be seeking hefty rate increases s next year. Rates for 20 foot containers heading westbound to U.S. Atlantic, Gulf and Pacific ports would rise by $600 from January 1, 2000, carriers in the Trans-Atlantic Conference Agreement (TACA) said. For 40 and 45 ft units the increase would be $750, they said


Ocean Freight Shipping Rates on the Rise

After a downtrend in the freight shipping tanker market since the middle of 2007, the industry has seen nothing but rate increases in the last month. This freight rate increase can affect consumers across the board, according to the freight transportation The cost of freight shipping can mean an increase in the cost of many consumer products, according to FreightBrokering.info, which is why it's so important to keep freight transportation costs down


Mediterranean Shipping Co. Rate Increase

Mediterranean Shipping Company (MSC) will file a General Rate Increase (GRI) of $160 per 20 ft container and $200 per 40 ft unit on all cargo moving from Europe to the USA. The company will also file a GRI of $200 per 20 ft unit and $250 per 40 ft unit applicable to freight moving from  Italy, Spain and Portugal (Western Mediterranean service)  to the USA, all coasts. These new rate increases go into effect April 1, 2009.


Horizon Lines Report Container Volume, Revenue, Up in Q3 2012

Horizon Lines' financial report shows volume improves 3.4%, & rate, net of fuel up 2.9% from a year ago. Sam Woodward, President and Chief Executive Officer comments on third quarter 2012 financial results: "Horizon Lines generated a 3.4% improvement in container volume and a 2.9% increase in container revenue, net of fuel surcharges, for the third quarter, relative to the same period a year ago," said Sam Woodward, President and Chief Executive Officer


Increased Panamax Rates Boost Market Sentiment

Higher panamax freight rates have boosted sentiment in the market amid hopes for further rates increases during the week, shipbrokers said on Monday. They gave as prime example the latest U.S. Gulf to Japan fixture at a rate of $23.25 per ton of heavy grain for mid-July loading dates, this compared with the present Baltic Panamax Index showing an average $22.86 per ton. Firmer fixtures had been also reported for both the Pacific and the Atlantic, brokers said.


Hapag-Lloyd Increases Rate Increase for North America services

Freight rates have come under pressure in recent months with the entry of new players into the North Atlantic market. Moreover, costs, particularly for charters, bunkering and additional security measures, have risen. Hapag-Lloyd has thus decided to raise freight rates for the North Atlantic and for the US Gulf and the US West Coast with effect from February 1st 2007. The increase amounts to $200 for a 20-ft. container and $250 for a 40' container.


Where are Container Shipping Rates Going?

The market index for Asia to North-Europe is still on the decline, the average for a 20ft saw a 19% drop since 26th of May compared to the 26th of June reports Norwegian price comparison company Xeneta. The market average for a 40ft in Asia to North-Europe performed similar with a 20% decline in container shipping rates in the same period. The rate pressure is higher than ever with the announced general rate increase on July 1


15 Carriers Agree to EU's GRI Modifications

Photo: Maersk Line

 15 container liner shipping companies have said they will stop publishing and communicating general rate increases (GRIs) that are expressed solely as an amount or percentage of the change, says the European Commission.   Shipper representatives have welcomed an agreement by  the container lines to abandon GRIs in favour of a new pricing announcement mechanism following a two-year inquiry by the EU into possible competition infringements – alleged “price


Container Shipping Paints Gloomy Picture

Photo: Maersk Line

The latest Container Shipping Forecaster from Maritime Strategies International reports ‘flickers of improvement’ in February after an opening to the year which saw 1.3m teu of capacity idle, freight rates struggling and the charter market on its knees.  


Asia-N.Europe Box Rates Jump 170 pct

File Image: a Maersk containership underway (Maersk)

Shipping freight rates for transporting containers from ports in Asia to Northern Europe jumped 170 percent to $732 per 20-foot container (TEU) in the week ended on Friday, data from the Shanghai Containerized Freight Index showed. Spot freight rates on the world's busiest routes soared as a


Logimatic Launches 3D Vessel Performance Management Service

Photo: Logimatic

Logimatic has expanded the vessel reporting system and dynamic dashboards within its Sertica software package, to provide an improved level of visual presentation of shipboard data and move towards a 3D vessel performance management service.  


Aberdeen Harbour Performance Steady on Diversity

Photo: Aberdeen Harbour

Activity at Aberdeen Harbour remained steady throughout 2015 resulting in the port recording a 9.7 percent increase in turnover, up from £28.9 million in 2014 to £31.7 million in 2015. Pretax profit was also up by 21 percent at £15.03 million, compared to £12


TEN Charters Tanker at 20% Premium

Tsakos Energy Navigation Limited announces two-year charter renewal at a 20 percent premium to prior contract reflecting strong tanker market fundamental, oil price levels positive for tanker markets   Greece-based crude, product and LNG tanker operator Tsakos Energy Navigation Limited


Asia-Europe Box Rates Soar 328 pct

A Maersk Containership (file image)

Shipping freight rates for transporting containers from ports in Asia to Northern Europe surged 327.7 percent to $988 per 20-foot container (TEU) in the week ended on Friday, one source with access to data from the Shanghai Containerized Freight Index told Reuters.


Overseas Shipholding Profits Up by 31%

Image: Overseas Shipholding Group

 Overseas Shipholding Group, Inc. (OSG, a provider of oceangoing energy transportation services, reported results for the quarter ended March 31, 2015.    Adjusted EBITDA was $113.7 million, up 31% from $86.6 million in the same period in 2014.  


Transpacific Container Lines Address Economic Pressures Ahead in 2016

Pic: Transpacific Container Lines

 In a container freight market challenged by volatility and facing the prospect of further consolidation, member shipping lines in the Transpacific Stabilization Agreement (TSA) have announced a phased increase in rates and a package of 2016-17 service contract guidelines intended to ensure


Asia-Europe Box Rate Drop Continues

Image: a Maersk containership alongside during cargo operations (Maersk)

Freight rates on world's busiest route down 20.6 pct; forward contracts indicate continued weak 2016 market. Shipping freight rates for transporting containers from ports in Asia to Northern Europe plunged by 20.6 percent this week and there is nothing to indicate that shippers can expect


Europe Set for Decline in Container Volume

Antwerp, the second-largest container port in Europe. Photo: Port of Antwerp

 The latest edition of Hackett's Global Port Tracker North Europe Trade Outlook predicts cargo volumes on the route may fall this year, with a decline of as much as 4% of total moves at ports in Northern Europe.   It predicts declines in container volumes at European ports in the first


Tanker Rates to Remain Under Pressure

Image: The Baltic Exchange

 The reduction in the new 2016 Worldscale flat rates  of Very Large Crude Carriers (VLCC) has led to spot rates increasing as owners look for equivalent 2015 returns, says tanker market assessments from the Baltic Exchange.  


Maersk, MSC, 13 Others Offer to Settle EU Probe

File image (Marad)

Companies offer to announce actual prices, not future plans. Shipping container groups Maersk, MSC and 13 other companies have offered to change their pricing practices to settle an EU antitrust probe and stave off possible fines, two people familiar with the matter said on Wednesday.


Shipping Firms Poised to Settle EU Probe

Photo: Mediterranean Shipping Company

 Fifteen container liner shipping companies "have offered to change their pricing practices to settle an EU antitrust probe and stave off possible fines," according to a report from Reuters Wednesday that cites two unnamed sources.  


Maersk Announces Rate Increase

Photo: Maersk Line

 The world’s largest container shipping company Maersk Line said that it will increase the rate from north Europe to west central Asia by US$100 per TEU, $150 per FEU and 40-foot high cube from March 1.   This will apply to shipments from Finland, Russia, Lithuania, Estonia


Container Freight Market Hit by Exceptionally Weak Demand

The latest Container Shipping Forecaster from Maritime Strategies International reports ‘flickers of improvement’ in February after an opening to the year which saw 1.3m teu of capacity idle, freight rates struggling and the charter market on its knees.  






 
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