Hanjin slates another Asia-Europe rate boost

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South Korea’s Hanjin Shipping announced a second round of box rate hikes this year on its westbound Asia-Europe trade lanes.

Hanjin, the world’s ninth largest carrier, said it will implement rate increases of US$400 for every 20-foot equivalent unit (TEU) and $800  for every 40-foot equivalent unit (FEU) starting April 1.

The rate hike covers dry, refrigerated, and special containers carried from the Far East and Southeast Asia to Northern Europe, the Baltic, and Scandinavia.

The same rate hike will be imposed on the India-Pakistan-Bangladesh Conference (IPBC) and Middle East to North Europe, Baltic, and Scandinavia trades; on the Far East and Southeast Asia to Mediterranean loops; as well as on the IPBC and Middle Eastto the Mediterranean routes.

From Japan to Northern Europe, the Baltic, Scandinavia, and the Mediterranean, there will be a hike of $700 per TEU and $1,400 per FEU.

Early in February, Hanjin announced March 1 rate increases on the Asia-Europe corridor of $700 per TEU and $1,400 per FEU.

The carrier said the rate increases were inevitable to cover the unsustainable level of current freight rates and rocketing fuel prices.

Container shipping lines have been announcing bold box rate hikes after majority reported huge losses last year due to a severe vessel capacity glut, high fuel costs, persistent low demand, and declining freight rates.

 

Photo: Hanjin Shipping