Shipping freight rates from India, Pakistan rise

Karachi: Marseilles’ CMA CGM, France’s number one container shipping company announced increases in freight rates for services, including some to and from Indo-Pak subcontinent, between February and March.

Starting February 1, for loops from Indian subcontinent to US East Coast, rates will increase by $320/ TEU (20foot equivalent unit, $400/FEU and $450/40foot high cube. From February 9, rates from India and Pakistan to Europe will go up by $200 a TEU and $400 a FEU. From February 15, rates for India/ Middle East, East Africa will increase by $200/TEU; and from March 1, rates for India and Middle East to Africa routes rise $150/TEU.

The shipping line’s other services to be covered by proposed increases include, among others, US, Far East ($75/TEU, $150/FEU/ high cube boxes, Mediterranean East Coast of South America ($200/TEU, North Europe-Far East ($200/TEU, Mediterranean – Far East ($200/TEU, Northern Europe -Middle East-Red Sea ($100/TEU, Baltic ports – Middle East – Red Sea Far East ($100/TEU, Mediterranean -Far East ($100/TEU & Asia to Adriatic ($250/TEU.

At same time Maersk Line is moving to take rate increases on Asia-Europe lanes to a higher level, announcing a $775 increase in pricing effective March 1 that would push rate to more than double the current spot market price.

Danish carrier said general rate increase will be applied to all dry and reefer cargo shipped from any Asian port to destinations in North Europe and the Mediterranean. OOCL also announced a GRI of $200 per container moving from North Europe to Asia, effective Feb. 15.

General rate increases on depressed Asia-Europe trade come as container lines report deep 2011 losses caused by weak demand and low rates. Shanghai Containerized Freight Index for Asia-Europe trade fell below $500 in late 2011 and since has grown to around $730 per TEU. That is still barely half the rate at this time last year. In attempt to deter similar losses in 2012, carriers, including Maersk & Hapag-Lloyd, have pushed rate increases on services originating from Far East.

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