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Shipping lines may miss peak-season targets

Shipping lines may miss peak-season targets

Date:2011-08-22 11:08Source:network Author:unknow
  

Container shipping lines may miss their peak-season targets on Asia-US routes, as orders for consumer goods fall below expectations and ships sail below capacity.

The build-up to the holiday and back-to-school shopping seasons, the busiest periods for US retailers, usually allows container lines such as Maersk and APL to introduce surcharges around mid-June.

This year, levies have been delayed until this week because of excess capacity on the main trades. The lines still may get less than the $400 per feu they set as a guideline for shipments to US west coast ports.

Maersk CEO Nils Smedegaard Andersen said: "What is agreed upon by a panel of container lines is one thing, but what will actually happen in the market is another.

"It's too early to say whether the surcharges will be successful."

Container lines' earnings have slumped this year as fuel prices have jumped 29%, while rates on Asia-west coast routes have tumbled 21% to $1,589 per box, based on the Shanghai Containerised Freight Index.

Extra transpacific capacity may prevent the lines from pocketing surcharges that usually make the second half their most profitable period.

Dong Jinghua, General Manager of Shenzhen Continents International Forwarding Co, which arranges about 300 container shipments a month, said: "Containerships to the US west coast are not filling up, which leaves shipping companies with few bargaining chips for imposing surcharges."

 

 
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