Maersk to levy super surcharge on eve of peak season

DENMARK's Maersk Line has told customers it is getting ready to levy a surcharge of US$750 per TEU and a $1,000 per FEU as well as a $1,200 per 40-foot high cube surcharge on Asia-to-north Europe from July 15, citing space constraints and equipment shortages.

"The container market from Asia to Europe is showing a continued strong trend, which we expect to carry on through the summer, resulting in space constraints and shortage of equipment," Maersk told customers.

European Liner Affairs Association (ELAA) figures show imports into Europe increased 12 per cent in April year on year to 1.25 million TEU. This is supported by Shanghai Containerised Freight Index numbers, which show all-in spot rates on the westbound Asia-Europe trade have reached $1,874 per TEU, on the eve of the peak season.

Both Maersk and the French carrier CMA CGM plan to introduce equipment re-positioning surcharges because of box shortages, reported London's International Freighting Weekly, adding that forwarders and shipping lines have been warning that there could be an equipment short falls in the peak season.

"The utilisation on the vessels, the demand for transportation in the second quarter has been much higher than normal, which means there's less slack in the network to accommodate for the peak that is coming," Maersk's Asia-Europe chief Vincent Clerc told Reuters.

Mr Clerc also said that demand is up 23 per cent year on year, suggesting carriers have been successful in not allowing capacity to outpace demand, thus keeping ships full and rates climbing.

According to American Shipper affiliate ComPair Data, there was 213,973 TEU of weekly capacity on the Asia-to-northern Europe trade on June 13. That's an increase of only 2.6 per cent since April 1, and only nine per cent since January 1.
(Source:www.schednet.com)