Hapag-Lloyd to raise transatlantic rates


Hapag-Lloyd said it will increase freight rates on transatlantic containerized cargo by as much as $400 for 20-foot boxes and $500 for 40-foot boxes at the beginning of September or October, depending on contract dates.

The increase comes on top of an emergency bunker surcharge of $75 due to go into effect on Aug. 1.
 

"Since last year the shipping industry has been hit hard by significant rate erosion in all major trades. As a result the industry is currently facing unprecedented low freight levels which are no longer sustainable," the company said in a memo to customers. "Rates have started to improve in some trades, and Hapag-Lloyd has now decided to launch a revenue recovery program for the Atlantic trades with several steps."
 

Rates for cargo moving between the United States or Canada and North Europe or Mediterranean will increase $400 for 20-foot boxes and $500 for 40-foot boxes. The same increase will also apply to cargo moving to Mexico from North Europe or Mediterranean.
For cargo moving from Mexico to North Europe of Mediterranean destinations, the increase will be smaller, $150 for 20-foot boxes and $300 for 40-footers.
 

Hapag-Lloyd's decision comes after its transatlantic volumes fell to 274,000 TEUs in the first quarter 19 percent lower than in the first quarter of 2008. Rates on the trade lane fell 6.7 percent to $1,543 per TEU in the first quarter when compared to the same 2008 period. In 2008, Hapag-Lloyd had seen freight volumes fall 4.7 percent to 1.39 million TEUs compared to 2007. Freight rates in the transatlantic averaged $1,733 per TEU in 2008, up 13.8 percent over 2007.
 

Hapag-Lloyd's announcement of a rate hike came as OOIL, the parent of container carrier OOCL, announced that its transatlantic volumes in the second quarter were 114,140 TEUs, 38.9 percent lower than in the same 2008 period. For the first half of the year, OOCL's transatlantic volume was 245,293 TEUs, down 31 percent from the first half of 2008.