DESPITE most industry observers predicting a weak peak period owing to the weak state of many European economies, container lines operating in the Asia-Europe trades have managed to increase rates in early August as the peak season kicks in.

The Europe component of the Shanghai Containerised Freight Index gained US$141 per TEU between July 26 and August 2, or 10 per cent, with the all-in rate for cargo moving from Shanghai to ports in the Hamburg, Antwerp, Felixstowe, Le Havre range climbing to $1,501 per TEU.

This compares with a low of $500 in late June before lines took concerted action to reverse the slide. General rate increases at the beginning of July were followed by more price adjustments on August 1.

Maersk Line, for example, said it recommended a general rate increase of $300 per TEU on services from Asia, excluding Japan, to northern Europe on August 1, according to London's Lloyd's Loading List.

CMA CGM imposed a peak season surcharge of $500 per TEU for all dry, empty, reefer, breakbulk and out-of-gauge cargo originating in Asia starting August 1. Coscon announced an August 1 general rate increase of $500 per TEU for all Asia-North Europe containers and $550 per TEU for cargo from Asia to the Mediterranean. OOCL said it planned to raise rates by $525 per TEU. MSC and MOL targeted slightly lower August rate rises of $500 per TEU.

Although the latest SCFI data shows that actual gains have been more modest so far, rates are now at the highest level for a year. In the Mediterranean trades, spot rates gained $259 per TEU or 21 per cent to $1,493 per TEU, while those from Shanghai to the US west coast were 6.5 per cent higher over the week. Rates for cargo moving from China to the US east coast gained 7.3 per cent to $3,513 per FEU.