Hapag-Llyod ups freight rates for major routes

Hapag-Lloyd announced freight rate increases on key routes, including Asia-Europe and the Atlantic, in a bid to restore profitability.

"Freight rates worldwide have reached a level that no longer covers costs," the German carrier said, adding the rate erosion on the Europe-Far East route that began in 2008 has continued into this year.

The rise comes two weeks after Maersk Line said it will raise general commodity rates for Europe-Asia shipments by $25 per TEU on March 1 and April 1.

The new rates for incoming services from East Asia to Europe will be $1,000 (Dh3,600) for a 20-foot container, $2,000 for a 40-foot box and $2,100 for a 40-foot high-cube container, including bunker and currency surcharges, effective April 1.

New tariffs for the Europe-Asia trade are $250 per 20- and $500 per 40-foot container. Further increases are planned for both directions during 2009. Rates for services from Canada, the East Coast, Gulf ports and Mexico to and from Europe and the Mediterranean will be raised by $160 per 20- and $200 per 40-foot box as of April 1.

Rates to and from the West Coast will rise by $240 and $300 for 20- and 40-foot containers.

Rates for services from Europe to Australia, New Zealand and the Pacific will rise by $260 for a 20-foot container and $520 for a 40-foot box, effective May 1.

Follow Emirates 24|7 on Google News.