Dutch shippers’ organisation EVO has questioned the motivation behind a recent round of rate hikes on routes linking Asia and Europe.
According to a report by freight and logistics news service IFW, the group has said that in light of current over-capacity in both vessels and containers recent rate increases by many major carriers was illogical and needed to be scrutinised by European authorities.
“Prices have been low precisely because of the large increases in (shipping) capacity, for which carriers and ship owners are responsible,” an EVO spokesperson told the news provider.
“Shippers know the container market inside out. There is now an oversupply of vessels and containers compared to the supply of goods to be transported, the logic of which dictates that market prices fall,” the spokesperson continued.
EVO believes the European Union needs to take note of these “unprecedented” increases and intervene “if irregularities come to light”.
Recently Fruitnet.com reported both OOCL and Hapag-Lloyd had announced rates increases, and on Tuesday Emirates Shipping Line announced a general rate increase, which it stated was to keep it in line with market conditions.
Danish carrier Maersk Line will raise its rate on the Asia-Europe lane by US$775 as of 1 March, an increase of almost 100 per cent, the EVO spokesperson stated.
MOL, NYK, MSC, and CMA CGM have also recently increased rates.
“If companies, without exception, actually increase prices in such a market, then something is just not right,” the spokesperson added.
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