About six months after it announced freight hike on ships enroute West Africa, multinational shipping line; Maersk Line is leading a group of nine multinationals to introduce a new regime of higher freight rates on all their ships coming to West African countries; including Nigeria.Member lines of the Asia – West Africa Trade Agreement (AWATA) last week announced a double increase on freight rates, effective April 1, 2010.
The rates include: an additional USD250 per TEU for all shipments between Asia and West Africa and an additional USD250 per TEU increase with effect from June 10, 2010.
Justifying the rise, AWATA argued that the increases are necessary in order to continue meeting the requirements of their clients.
The nine members of AWATA are: China Shipping Container Lines, CMA CGM, Delmas, Gold Star Line, Maersk Line, Mediterranean Shipping Co, Mitsui OSK Lines (MOL), Pacific International Lines (PIL), and Safmarine Container Lines.
Confirming speculations that it was behind the AWATA rate increase, Maersk Line also last week issued a statement in which it confirmed rate increases on services to and from West Africa and on services between Asia and Latin America.
It said it is seeking what it and other carriers have been calling “rate restorations” in language that is becoming increasingly familiar in all rate announcements: “The trading conditions for the carriers operating in these markets are still subject to unacceptable rate levels and the situation is unsustainable in the longer term.”
Explaining further, it states that on “services between India, Sri Lanka and West Africa, it will boost rates on Sept. 1 by $250 per 20-foot container on all dry and reefer cargo and commodities.
Maersk said that as a member of the Asia – West Africa Trade Agreement, it will boost rates by $250 per TEU on Aug. 15 on services between the Far East and West Africa.
It also plans to raise rates by $250 per TEU on September, 1 on its AWATA services between West Africa and the Middle East.
The Danish carrier is also seeking rate increases on services to Latin America as follows: $300 per TEU and $600 per 40-foot container between Asia and Mexico and the West Coast of Central America, effective Aug. 15, $200 per TEU and $400 per FEU between Asia and Panama, effective Aug. 15 and $350 per TEU and $700 per FEU between Asia and the West Coast of South America, effective September, 1.
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