Sunday, April 29, 2012

Maersk Happy with Daily Container Shipping Service as Freight Rates Rise

97% Reliability but Overall Costs will Rise
Shipping News Feature

DENMARK – WORLDWIDE – Whilst declaring an unmitigated success for their Daily Maersk service, whereby the container shipping line guarantees total transit time for freight at the time of booking provided certain criteria are met, it seems Maersk Line are again about to hike rates on several of their services.

Daily Maersk operates on the Asia-North European trade lane and, after the first six months the company claims a creditable average reliability of 97% has been maintained. So confident were Maersk that they would maintain this sort of standard they actually agreed to pay reparation should the terms of the agreement not be met.

Maersk Line’s unique product offers daily cut off times for cargo loading (rather than weekly cut-offs); providing great flexibility for customers. It also measures reliability based on container availability for gate-out at the destination port and not the transit time for service. Daily Maersk’s current reliability exceeds 99%.The service has been gaining popularity in the world’s busiest corridors, in the corridor from Yantian in China to Felixstowe in England alone it has transported more than 17,000 containers in the first six months.

However all of course is nor rosy in box land and the Daily Maersk service was a brave attempt to introduce a certainty to a market suffering from over supply of carrier potential and, according to press reports, the rate increases we outlined in our article earlier this month are only part of the story. According to the Journal of Commerce, but not yet confirmed on Maersk’s own site, the company will introduce revised tariffs in Mid may with increases of $150 per 20-foot and $300 per 40-foot/45-foot high cube container on cargo from Far East Asia to India and Pakistan.

Additionally from the U.S. to ports in the Indian Subcontinent, the Middle East and Red Sea region, the carrier will raise its rates by $100 per container and rates on dry cargo from Far East Asia to Central America and the Caribbean will increase by $560 per 20-foot and $800 per 40-foot/high cube container whilst Far East Asia to East African consignments will cost $200 per TEU more and there will be a massive rate increase of $500 per 20-foot and $1,000 per 40-foot container on trades from Southeast Asia to Australia, this one effective immediately.