Mediterranean Shipping Company (USA), joining the push by ocean carriers to pump up depressed container shipping price, announced a series of rate increases Tuesday starting September 1.
Mediterranean Shipping Company (USA), joining the push by ocean carriers to pump up depressed container shipping price, announced a series of rate increases Tuesday starting Sept. 1 for U.S. shipments on Atlantic and Pacific lanes. The increases, which will take effect on a staggered basis over a month, range from $500 per 40-foot container on westbound traffic from the European Union to the United States to $120 per 20-foot container on goods from the United States to Asia.
The MSC rate hikes follow a flurry of announcements from carriers over the last two weeks, including increases from Maersk, OOCL, Hanjin, CMA CGM, Evergreen and carrier groups such as the Westbound Transpacific Stabilization Agreement. Several of the carriers said spot rates, which have fallen by more than half over the past year on some lanes, had reached levels where ongoing service was not sustainable.
MSC did not offer comment on its general rate increase but the impact appeared to affect most if not all its services touching the U.S.
The increases starting Sept. 1 will include an additional $500 per FEU for EU to U.S. trade, or $400 per TEU, and $250 per FEU and $125 per TEU on traffic from Israel to the U.S.
On Sept. 5, the rates from the U.S. to Asia will grow by $150 per FEU and $120 per TEU on all commodities except refrigerated cargo moving through West Coast and on freight through East Coast and Gulf Coast ports. Reefer rates will grow by $250 per FEU and $190 per TEU on West Coast business to Asia and $300 per FEU and $225 per TEU on East Coast and Gulf Coast reefers bound for Asia.
The last increase will come Oct. 1 on shipments from Italy, Spain and Portugal to the U.S., which will grow by $300 per FEU and $300 per 20.