CMA CGM announced a rate increase of $750 per 20 foot container on the Asia-Mediterranean-North Europe route effective March 1, mirroring recent rate hikes by close rivals Maersk Line and Hapag-Lloyd.

    The French carrier said the increase consists of a $200 per TEU rate restoration and a $550 per TEU interim fuel surcharge. The hikes are in response to an “unprecedented” decline in rates in 2011, a sharp increase in bunker prices and deteriorating operating conditions in Asian ports.

    “The present level of freight rates is insufficient to cover ships costs including port and Suez Canal costs as well as bunkers,” CMA CGM said.

    The tendency to quote “all in” rates, including surcharges such as bunker adjustment factor, currency adjustment factor, Aden Gulf surcharge, Suez surcharge, has left carriers without any proper coverage of the costs, the Marseilles-based carrier said.

    The higher rates will apply to containers shipped from all Asian ports, including Japan, South East Asia Colombo and Bangladesh, to all northern European ports and to the Mediterranean, Adriatic Sea, Black Sea and North Africa. The higher rate applies to dry cargo, out of gauge cargo, paying empties, break bulk and refrigerated cargo.

(Source:JOC)