Major shipping lines involved in the Asia-Europe trade are planning a series of rate increases through 2009 aimed at turning around the biggest loss-making container trade into at least a break-even situation.
But whether the lines will achieve the increases is extremely doubtful in the current climate. A China Shipping Container Lines source said: "Sure, it is the right step, but it is purely a bargaining position to achieve some rate increase, and it is unlikely customers will agree. But if the shipping lines walk away with say $100 per TEU, at least it is something."
Over the last quarter, shipping lines engaged in the Asia-Europe trade have been quoting so-called "all-in figures" for freight rates, which involve the general freight rate, plus the additional surcharges such as bunker adjustment figures (BAF) and currency adjustment figures (CAF).
With the demise of the conference system, each line can quote individually, and for March 2009, the BAF figures for westbound Asia-Europe run typically between $200-$300 per TEU and the CAF levels hover around six to eight percent.
Back in October 2008 when the conference system ended, the typical westbound BAF figures were between $600 and $800 per TEU, and CAF was anywhere between 12 to 18 percent.
But whether the lines will achieve the increases is extremely doubtful in the current climate. A China Shipping Container Lines source said: "Sure, it is the right step, but it is purely a bargaining position to achieve some rate increase, and it is unlikely customers will agree. But if the shipping lines walk away with say $100 per TEU, at least it is something."
Over the last quarter, shipping lines engaged in the Asia-Europe trade have been quoting so-called "all-in figures" for freight rates, which involve the general freight rate, plus the additional surcharges such as bunker adjustment figures (BAF) and currency adjustment figures (CAF).
With the demise of the conference system, each line can quote individually, and for March 2009, the BAF figures for westbound Asia-Europe run typically between $200-$300 per TEU and the CAF levels hover around six to eight percent.
Back in October 2008 when the conference system ended, the typical westbound BAF figures were between $600 and $800 per TEU, and CAF was anywhere between 12 to 18 percent.
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