China Shipping Container Lines Raises Rates
July 7, 2009 · Print This Article
China Shipping Container Lines Co. said it’s hard to predict if rates will keep rising because fees reflect demand.
By staff reporter Zhou Lingling
(Caijing.com.cn) Signs of a recovery in demand have prompted some global shipping firms, including China Shipping Container Lines Co. (SSE: 601866; HKSE: 02866), to raise rates on selected routes effective July 1.
CSCL’s investor relations office told Caijing that the carrier raised rates on China-Europe and China-Mediterranean routes by US$175 per twenty-foot equivalent unit to about US$400, with a further US$50 hike from July 15 in the pipeline. CSCL also raised rates on routes to Australia, Africa and the west coast of South America, the official said.
Meanwhile, container lines participating in the North Asia/New Zealand Discussion Agreement – an alliance formed as ‘a voluntary discussion forum’ – said rates on services linking China and South Korea with New Zealand will rise US$250 per TEU from July 15.
The Canada Westbound Transpacific Stabilization Agreement also said its members raised rates for dry containers by US$160 per TEU, effective July 1.
Neither organization disclosed the new rates.
Several container shipping lines had to abandon planned rate hikes in April amid a sluggish market.
According to the Shanghai Shipping Exchange, China’s export container shipping index closed at 769.05 points on July 3, up 0.8 percent week-on-week, ending several weeks of declines.
The exchange said in a report that traffic on routes to Europe grew significantly in the run-up to the traditional July-August peak season as domestic manufacturers accelerated production and shipments. But the exchange also said that current rates don’t cover shipping firms’ operating costs on services to Europe.
Li Pan, an analyst at Bank of China International, said in a recent report that shipping firms are expected to raise rates to offset rising costs during the peak season and into the third quarter.
With oil prices inching higher, shipping lines’ fuel surcharges are also rising.
An official from CSCL said the company will raise fuel surcharges on services to Europe and the Mediterranean by US$75 per TEU this month. The Asia-West Coast South America Freight Conference also said it will raise its bunker surcharge to US$522 from US$450, Â beginning July 15.
CSCL said it’s hard to predict if rates will keep rising because fees reflect demand. The global downturn has driven down container shipping traffic and rates.
CSCL’s net profit fell 96 percent last year to 131 million yuan, and it reported a net loss of 1.2 billion yuan in the first quarter of this year.
In Hong Kong on July 7, China Shipping Container was up 0.49 percent at HK$2.05, while in Shanghai its A shares were up 1.11 percent at 4.54 yuan.
China Shipping Container Lines Co. said it’s hard to predict if rates will keep rising because fees reflect demand.
By staff reporter Zhou Lingling
(Caijing.com.cn) Signs of a recovery in demand have prompted some global shipping firms, including China Shipping Container Lines Co. (SSE: 601866; HKSE: 02866), to raise rates on selected routes effective July 1.
CSCL’s investor relations office told Caijing that the carrier raised rates on China-Europe and China-Mediterranean routes by US$175 per twenty-foot equivalent unit to about US$400, with a further US$50 hike from July 15 in the pipeline. CSCL also raised rates on routes to Australia, Africa and the west coast of South America, the official said.
Meanwhile, container lines participating in the North Asia/New Zealand Discussion Agreement – an alliance formed as ‘a voluntary discussion forum’ – said rates on services linking China and South Korea with New Zealand will rise US$250 per TEU from July 15.
The Canada Westbound Transpacific Stabilization Agreement also said its members raised rates for dry containers by US$160 per TEU, effective July 1.
Neither organization disclosed the new rates.
Several container shipping lines had to abandon planned rate hikes in April amid a sluggish market.
According to the Shanghai Shipping Exchange, China’s export container shipping index closed at 769.05 points on July 3, up 0.8 percent week-on-week, ending several weeks of declines.
The exchange said in a report that traffic on routes to Europe grew significantly in the run-up to the traditional July-August peak season as domestic manufacturers accelerated production and shipments. But the exchange also said that current rates don’t cover shipping firms’ operating costs on services to Europe.
Li Pan, an analyst at Bank of China International, said in a recent report that shipping firms are expected to raise rates to offset rising costs during the peak season and into the third quarter.
With oil prices inching higher, shipping lines’ fuel surcharges are also rising.
An official from CSCL said the company will raise fuel surcharges on services to Europe and the Mediterranean by US$75 per TEU this month. The Asia-West Coast South America Freight Conference also said it will raise its bunker surcharge to US$522 from US$450, Â beginning July 15.
CSCL said it’s hard to predict if rates will keep rising because fees reflect demand. The global downturn has driven down container shipping traffic and rates.
CSCL’s net profit fell 96 percent last year to 131 million yuan, and it reported a net loss of 1.2 billion yuan in the first quarter of this year.
In Hong Kong on July 7, China Shipping Container was up 0.49 percent at HK$2.05, while in Shanghai its A shares were up 1.11 percent at 4.54 yuan.
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