Fuel costs, export demand and a weak American dollar lead to rate increases effective 1 July
As a result of increasing costs associated with the growing North American export trade, Maersk Line will enact general rate increases for export cargo from the United States and Canada effective 1 July 2008. This will include trade routes for the Transatlantic (ATL), Mediterranean (MED), and Middle East Container Line (MECL) for dry commodities, excluding military shipments. In addition, a general rate increase will impact refrigerated cargo destined to all ports in the Far East, Mid-East, Mediterranean, Black Sea, North Europe, and Baltic’s (excluding fruit, fresh produce and Alaska origin cargo) effective 1 July 2008.
The weak dollar has driven export volume to surge 22% since last year. The significant demand for agricultural products by global markets translates into equipment demand in the U.S. Heartland. High fuel costs and equipment repositioning expenses are required to move the empty containers from the coastal port and metropolitan areas where the imports are received.
“With the rapid increase of the North American export market, growing equipment costs and availability challenges, as well as ever-increasing fuel costs, a general rate increase on North American export cargo is a necessary reality,” said Robert Kledal, Senior Vice-President of Route Management for Maersk Line. “Our customers will receive the excellent, end-to-end service reliability and customer service with which they are accustomed when shipping with Maersk Line.”
Effective July 1, 2008, rate increases for 20’ containers will range from USD 120 to 400 depending on the destination and trade route. For 40’ standard, high-cube and 45’ containers, increases will range from USD 150 to 400 per container. Refrigerated cargo, shipped in 40’ high-cube refrigerated containers will sustain a USD 500 per container increase for most commodities, with minor differences from Canada.
NEW MAERSK LINE BAF FORMULA: TRANSATLANTIC TRADES
Transatlantic - Eastbound: ’ USD 115 per 20’ container
’ USD 230 per 40’ container
Transatlantic - Westbound:
’ USD 140 per 20’ container
’ USD 280 per 40’ container
Transatlantic - Eastbound (origin US West Coast only):
’ USD 170 per 20’ container
’ USD 340 per 40’ container
Transatlantic - Westbound (destination US West Coast only):
’ USD 210 per 20’ container
&bulll; USD 420 per 40’ container