After discounting prices for quite some time now, Maersk announced that it would be hiking the rates for all kinds of freight on the Asia-North Europe trade lane come July end. Maersk also said that rates on other trade lanes “may also be subject to increases” on reassessment.
The rate announcement this morning will see Maersk’s FAK rates from Asian main ports to the three North European hubs of Rotterdam, Felixstowe, and Gdansk increase on 31 July to $1,025 per 20ft and $1,900 per 40ft.
According to a statement released by the shipping giant, the rate hike has been induced “to continue offering you a broad portfolio of high-quality services”. It is expected that the rates should normalize by the end of the year. Amid the ‘damp’ peak season last year, and a similar trend expected this year, there has been a sharp fall in shipping rates on the Asia-North Europe trade lane.
A recent report by Xeneta for the Asia-North Europe rates revealed that shipping rates on the route have nearly halved since the beginning of 2023. On the other hand, the Ningbo index commentary yesterday said that the ‘oversupply’ of containers has not eased out yet. “Carriers continue to undersell their space to canvass more shipping orders,” it said, adding that rates were still falling.
It is feared that other carriers may also follow Maersk’s steps and hike rates along the trade lane, putting an early end to the period of sub-economic trading on the route.