APL to raise freight rate

Singapore - Neptune Orient Lines (NOL) has announced that its container unit, APL, will raise freight rates on trade routes between Asia and Europe. The move follows an initiative announced earlier this year.

APL's rates on the eastbound Europe to Asia leg will cost an additional US$100 per-container, for scrap commodities such as paper, starting 1 June 2009, said NOL.

In the Westbound Asia to Europe trade lane, rates per TEU (20-foot equivalent units) will rise by US$300 for all freight to the Mediterranean starting 15 June and 1 July to North Europe.

Detlev Kerber VP of APL Asia-Europe Trade said, "Despite the relative success of initiatives we implemented earlier this year, rates in the Asia-Europe trade are not even close to sustainable levels. We will be doing everything possible to ensure the latest rises are upheld."

In February, NOL said would raise APL's Asia-Europe rates to a more sustainable level, in light of falling freight rates globally.

NOL said container volume in the four weeks to 1 May 2009 dropped 22% year-on-year.

NOL carried 157,800 TEUs or FEUs (40-foot equivalent units) during the period, which is 203,000 lower than the year before. Average revenue per container fell 21% to US$2,322 due to weaker demand on all major trade lanes coupled with lower bunker recovery and freight rate pressures, CNA reported.

On a year-to-date basis, NOL said container shipping volume dropped 26% while average revenue per-container dipped 17%.