Exporters predicts more increases as Maersk orders higher box charges

Exporters and cargo owners will see a further round of freight rate increases in the next two months as container shipping lines continue efforts to boost profitability after one of the worst downturns in the shipping industry.

Maersk Line chief executive Soren Skou confirmed the carrier, the world's largest box shipping line, would increase box rates from November 1 on key trade lanes including Asia-Europe services. Skou did not give details about the level of increase but was confident the increases would be successful. "We'll probably need further rate increases to get revenue up to a sustainable level," he said.

Exporter and manufacturing groups have criticised the level of increases. Sunny Ho Lap-kee, executive director of the Hong Kong Shippers' Council, said shipping costs were rising while export growth and Western consumer demand remained soft.

Ho said: "A general rate increase in November? He (Skou) must have lost his mind. The market is weak and November is the trough."

Other carriers, including the Tung-family controlled Orient Overseas Container Line and Cosco Container Lines, have either confirmed plans to raise rates or are likely to follow Maersk. It would be the sixth or seventh rise in freight rates on the Asia-Europe trade imposed by container lines since the beginning of this year.

OOCL will raise rates by US$250 per 20-foot equivalent unit (teu) from September 10 on shipments from Asia, South Asia and the Middle East to north Europe, the Mediterranean and the Black Sea. Cosco will increase rates by US$400 per teu from September 8 on the same routes.