Weekly GRI roundup
Hapag-Lloyd will increase its rates on all cargo from the Indian Subcontinent and Middle East to Mexico, Central America, the West Coast of South America, Panama and the Caribbean on April 15. Rates will increase $200 per TEU and $300 per FEU.
Maersk will increase its rates on all dry cargo from the Middle East, India and Pakistan to the U.S. and Canada on May 1. Rates will increase $225 per TEU; $300 per FEU; $350 per 40-foot highcube; and $375 per 45-foot container.
On Friday, April 4, the Shanghai Container Freight Index was set at 1064.87, down 2.57 points from March 28. The SCFI components for cargo moving to the U.S. were $1,808 per FEU, down $16 to the West Coast; and $3,262 per FEU, down $16 to the East Coast.
SCFI Analysis (Richard Ward of Freight Investor (UK) provides occasional analysis and insight into the Shanghai Container Freight Index.)
A continued weak rate environment has been
reflected in the results announced over the past few weeks, with the industry as
a whole still awash in red ink. Even CMA CGM, which reported a profit of $408 million, up 22.8 percent from the previous year, could not hide
the 26.9 percent fall in core EBIT to $756 million. The French line was, however, able to report such an impressive increase in consolidated profits due to the
sale of its Terminal Link business earlier in 2013.
Looking ahead, the French line anticipates that
rates will remain under pressure throughout the year due to the continued
mismatch between supply and demand, with this year to be a repetition of 2013.
Without further asset sales and significant cost reductions, it is hard to see
how the industry in general will post anything other than further losses for
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