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 17 (Reuters) – Container shipping company Maersk Line, a unit of Danish conglomerate A.P. Moller-Maersk, plans to raise freight rates sharply on main routes from ports in Asia to ports in northern Europe, with effect from Nov 1.
Rates for twenty foot equivalent unit containers (TEU) will rise by $900, Maersk Line spokesman said after the company sent a letter to clients.
According to the Shanghai Containerized Freight Index, twenty foot rates from Asia to Europe stood at $705 this week and it is widely seen as a loss-making level.
The world’s third biggest container shipping company, French CMA CGM, announced earlier this week its intention to increase freight rates on routes from Asia to North European ports by $850 per TEU. (Reporting by Ole Mikkelsen; editing by Sabina Zawadzki)
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