Maersk unleashes ‘shock and awe’ rate hike

Maersk is attempting to undo weeks of heavy discounting on the Asia-North Europe tradelane with a substantial increase in its FAK rates at the end of the month.

And it warned that other routes “may also be subject to increases” as it reassess rate structures across its network.

The rate announcement this morning will see Maersk’s FAK rates from Asian main ports to the three North European hubs of Rotterdam, Felixstowe and Gdansk increase on 31 July to $1,025 per 20ft and $1,900 per 40ft.

The carrier said it was needed in order “to continue offering you a broad portfolio of high-quality services”, adding that the rates would be valid until further notice, “but not beyond” 31 December.

The rate erosion on the trade has been accelerating, Xeneta’s XSI Asia-North Europe component average spot rate losing another 1.3% last week, to $1,224 per 40ft, having virtually halved since the beginning of the year.

And market rates for North Europe, including those offered via Maersk’s in-house platform, Twill, have been falling dramatically in the past few weeks to below $1,000 per 40ft, as early peak season demand has proved to be a damp squib. Indeed, hitherto Twill has been quite aggressive in the market, a number of forwarding and shipper contacts confirming they had agreed low rate deals with Maersk’s logistics arm.