Hapag-Lloyd to up rates 70pc, to blank 25pc of sailings
THE Alliance plans to blank a quarter of its Asia-Europe sailing in early December, while Hapag-Lloyd plans to raise its rates on the route 70 per cent, reports London’s Loadstar.
The German carrier’s Freight All Kinds (FAK) rate from Asia to North Europe from December 1 would increase US$2,000 to $4,890 per FEU high-cube.
For the UK, Hapag-Lloyd’s FAK rate will be $5,390 for the UK, and for west Mediterranean ports the same increase will be applied to take the rate to $4,910.
Meanwhile, the Shanghai Containerised Freight Index (SCFI) published a spot rate of $1,246 per TEU for North Europe.
Paris-based consultancy Alphaliner noted that the record high for spot rates between Asia and North Europe was $4,328 per FEU in March 2010, meaning Hapag-Lloyd’s latest FAK rate, if accepted, would break a record.
“They are bouncing us into paying their ridiculous FAK rates by rolling our boxes week after week.” said a UK forwarding source.
Meanwhile, Hapag-Lloyd, ONE, Yang Ming, and HMM declared that in week 49 they would void their FP2 loop, which has an average weekly capacity of 21,307 TEU, according to the liner database eeSea.
Said the Alliance: “During these unprecedented times of the pandemic, the members of THE Alliance have endeavored to keep the supply chains of its customers moving.”
The European Shippers Council has been critical of ocean carriers increasing freight rates as they withdraw capacity, and is concerned by their market behaviour.