Tuesday, January 19, 2010

Hanjin Intend To Recover Freight Revenue On Container Shipping

Programme for Recovery Announced for 2010
Shipping News Feature

SOUTH KOREA – Hanjin Shipping, the country’s largest bulk and container shipping company, have announced they will make a stand in the coming months against the erosion of freight rates world wide as the current economic downturn persists. Just last month the company joined with fellow members of the Asia Australia Discussion Agreement (AADA) to set new rates for Chinese export cargoes which came into force this week. Yesterday the company announced a freight rate restoration programme for all FCL shipments on the Trans Atlantic routes, that is between North America, Northern Europe and the Mediterranean, both East and West bound.

The planned increases are to be implemented on 1st April, 1st July and 1st October and will mean an extra charge on each occasion of $300 per twenty foot unit and $400 per forty foot. These rates will apply to all container types and will mean that by the end of 2010 rates per TEU will have risen $900.

Hanjin Shipping comments, “This rate recovery program is necessary for us as we must maintain the quality service and schedule reliability that our customers expect from us. We will continue to seek all possible measures that will bring mutual benefits for us and our customers during this time of crisis. ”

Whether customers will agree, and indeed whether competitors will maintain the same rate increase levels as each line waits for the others to blink is of course open to discussion. Corporate rates set well in advance for bulk customers have always proved contentious for the lines involved.

Just last week an agreement settled among the CKYH Alliance partners, (COSCON, “K”Line, Yang Ming and Hanjin Shipping) the companies decided to adopt a slow steaming policy on the Asia – U.S. East Coast services for immediate adoption in an effort to reduce fuel costs. Hanjin added an extra 4000 TEU carrier to maintain service levels.