China Shipping Container hikes South America rates
China Shipping Container Lines Co., the nation’s second-largest cargo-box carrier, will raise rates for hauling goods to South America and Southern Africa as the industry seeks a return to profit through higher fees.
Asia-South America rates will rise by 15 percent, or $350, per 20 foot box, and Asia-Southern Africa rates will go up by $200, about 10 percent, Huang Danxiang, the company’s deputy investor relations manager, said by phone today. The higher fees come into effect starting Oct. 15.
CSCL also raised charges on Asia-Europe, Australia, Middle East and transpacific routes last month as shipping lines worldwide seek to end a slump in rates caused by overcapacity and slowing demand. Industrywide losses may total at least $20 billion in 2009, the Transpacific Stabilization Agreement said last week, citing Drewry Shipping Consultants Ltd.
“Container lines have to take action to reduce losses,” said Jack Xu, an analyst at Sinopac Securities Asia. “There is a temporary recovery in the world economy currently and they are trying to catch this opportunity.”
CSCL gained as much as 3.6 percent in Hong Kong trading and was up 1.6 percent at HK$3.15 at 12:08 p.m. (Bloomberg News)



