Maersk NZ says container rates hike to US ‘won’t be the last’
Price rise may be the first of a series as the world's biggest container shipping line seeks a return to profit.
BUSINESSDESK: Maersk is lifting container rates between New Zealand and the US in the first of what may be a series of price increases as the world's biggest container shipping line seeks a return to profit.
The Copenhagen-based company is lifting rates by $US150 per 20-foot container and $US350 per 40-foot container starting on August 15. The level of the rate increase has not been specified.
The increases affect rates for for dry and reefer shipments from the US to all destinations in Oceania, including New Zealand.
"We are not making enough money at the moment and therefore there are widespread efforts within the organisation to restore rates – this is part of that," Julian Bevis, New Zealand managing director told BusinessDesk. "It's not the first [rate rise] and I am sure it won't be the last."
"We are not satisfying our shareholders," he said.
The B shares of parent A.P. Moeller-Maersk have provided a return of 3.02% in the past year, according to Bloomberg.
Maersk, which has a global market share of about 15%, cut 9% of its shipping capacity on Asia to Europe, its largest trading route, in an effort to restore profitability in February.
In New Zealand, the company has pulled out of services to Timaru’s port and last year switched some North Island services to Port of Tauranga from Ports of Auckland.
Maersk globally has been looking for additional measures to cut capacity, including changing time-charter agreements, laying up vessels and sailing slower after freight rates jumped when the industry added too many ships in anticipation of a trade recovery and high fuel costs caused a price war last year.
The container industry is estimated to contribute about $US380 billion in freight rates to the global economy or about 5% of total world trade, according to United Nations figures.
Hannah Lynch
Fri, 20 Jul 2012
Fri, 20 Jul 2012
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Maersk NZ says container rates hike to US ‘won’t be the last’
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