NOL raises Asia-Europe rates

Singapore - NOL said it is raising its APL unit's Asia-Europe rates in an attempt to bring falling global freight rates to a more sustainable level.

The company said it will raise fees as much as US$174 per box for shipping paper and scrap commodities on its eastbound legs, and as much as US$100 for all other commodities.

The increase is effective 15 March this year.

It is also planning to increase the quantum of the freight rate increase on containers shipped from Asia to Europe on the westbound leg to US$250 per TEU, effective 1 April this year.

"Freight rates in this trade have been falling drastically for more than a year," said APL vice president of Asia-Europe trade Detlev Kerber. "We are meanwhile facing a situation where in many cases not even variable transportation costs are covered by current freight rates.

"Our intention is to restore freight rates in the Asia-Europe trade to a sustainable level," he said.