Fri, Jul 02, 2010 - Page 11 News List

Evergreen Marine Corp raises rates on European routes


Evergreen Marine Corp (長榮海運) yesterday raised its shipping rates on European routes and said it would add surcharges during the current peak season amid strong demand.

The shipping company said the rates on its Europe-Mediterranean westward routes were increased yesterday by US$250 per twenty-foot equivalent unit (TEU), a measurement for capacity of container transportation.

A peak-season surcharge of US$300 per TEU will also be added to the rates on those routes, effective from July 18, it said.

“The demand for container transportation from Europe is on the rise — the rate hikes just reflect the market reality,” an Evergreen Marine spokeswoman said.

Evergreen’s main competitor, Yang Ming Marine Transport Ltd (陽明海運), said it also planned to raise rates on its European shipping routes this month, but declined to give further details.

Henry Miao (苗台生), vice president of Hua Nan Securities Investment Management Co (華南永昌投顧), said demand for container shipping space has exceeded supply as a weaker euro has been spurring demand for products from the eurozone.

“With the approach of the Christmas season, there has been a very obvious increase in demand for cargo transportation on the European routes,” Miao said.

He said exporters are competing for container space so that they could make their deliveries on time.

“It is therefore no surprise that the shippers have increased their rates,” Miao added.

“Strong demand for cargo transportation worldwide is likely to continue into the third quarter,” he said.

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