High Shipping Costs Are Here to Stay Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
COPENHAGEN, Oct 20 (Reuters) – The world’s largest container shipping company, Maersk Line, plans to raise spot freight rates sharply on main routes from ports in Asia to ports in northern Europe with effect from Nov. 1, the company said on Tuesday.
Spot rates for twenty foot equivalent unit containers (TEU) will rise by $1,000, Maersk Line wrote in a letter to customers.
The planned price hike corresponds to a 429 percent increase from current levels if implemented successfully. Container rates typically rise in big jumps announced by the shipping companies before gradually easing back over time.
According to the Shanghai Containerized Freight Index, twenty foot rates from Asia to Europe stood at $233 last week, which is widely seen as a loss-making level. (Reporting by Ole Mikkelsen; editing by Sabina Zawadzki)
(c) Copyright Thomson Reuters 2015.
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