Neptune Orient Lines (NOL) has moved to increase container rates on Asia-Europe trade routes to improve what it said are unsustainable rate levels.
NOL’s container arm APL will boost the rates started next month. For the produce trade, westbound Asia to Europe routes will see rates go up US$300 per TEU for all cargo to the Mediterranean and North Europe commencing 15 June and 1 July respectively.
The company reported an unexpectedly poor first quarter result this year – a loss of US$245m. That coincided with a 26 per cent drop in cargo volume for the first four months, year-on-year, and a 17 per cent drop in revenue per container.
“Despite the relative success of initiatives we implemented earlier this year, rates in the Asia-Europe trade are not even close to sustainable levels,” said APL’s vice-president for Asia-Europe trade Detlev Kerber.
“We will be doing everything possible to ensure the latest rises are upheld.”
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