June 16, 2011 (LBO) – Container shipping line CMA CGM has announced a freight rate increase from July 1 including on cargo loaded from Sri Lanka, joining other lines that are trying to raise rates. CMA CGM, the Marseilles-based line that is the world’s third largest container shipping line, said it planned to hikes rates on Asia-Europe and Latin America routes to compensate for falling revenues and high fuel costs.
Rates on shipments from Sri Lanka are set to rise by 275 US dollars per TEU (Twenty-foot Equivalent container Unit), the line said in a statement.
“In response to the on-going deterioration of revenues on the Asia – North Europe Trade, CMA CGM Group has decided to implement as from 01/07/2011 a Rate Restorationâ€ of 275 dollars per TEU applicable on all shipments from Asia (including Bangladesh and Sri Lanka) to North Europe (including UK and Baltic countries).”
CMA CGM also said: “Further adjustments might follow at a later stage to raise our revenues at a sustainable level again.”
Freight rates have been falling owing to over-capacity on the main trade routes caused by a glut of bigger new ships being deployed by shipping lines.
Several other big lines have