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Hyundai Merchant Hikes Freight on China Shipments to Indian Sub-Continent

  • South Korea's Hyundai Merchant Marine proposes a general freight increase of $400 for a 20-ft equivalent unit (TEU) from April on all shipments from China to the Indian sub-continent covering India, Bangladesh and Sri Lanka, according to shipping industry sources.Hyundai had levied freight increases on China-India service in December last year and more recently earlier this month.

  • Taiwan's Wan Lai too has announced rate increase from the Far East to India from April.The proposed increases will be $150 a TEU and $300 for a 40-ft equivalent unit on dry, reefer and specialised cargo from Japan, Korea, Mainland China, Hong Kong, Taiwan and a few other South Asian countries to India's east coast ports, it is learnt.

FURTHER INCREASES

  • Almost all container operators serving the westbound Asia-Europe trade jacked up rates in past few months, some even more than once, and further increases are not being ruled out.

EASTBOUND EUROPE-ASIA TRADE

  • The shippers, therefore, apprehend that it is now the turn of the eastbound Europe-Asia trade to experience freight hike, in one form or the other. The apprehension may not be totally unfounded.A few days ago Maersk Line has announced cut in its capacity on the Europe-Asia leg complaining of equipment imbalance caused by cancellations of sailings during the Chinese New Year. The move is being viewed by many as a precursor to freight increase on the route.The Geneva-based Mediterranean Shipping Company has now announced that it will shortly levy $100 a container, regardless of the size, as repositioning surcharge on the eastbound Europe-Asia leg to cope with the current equipment imbalance.Others will follow suit, sources said.

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