CMA CGM to raise rates for Europe-North American services October 1

MARSEILLE-based CMA CGM recently announced that it will raise rates for dry and reefer containers for services from North Europe/Mediterranean to the US, Canada and Mexico with effect from October 1.

This may well affect "way-porting" Asian containers dropped off at Mediterranean and Red Sea ports and transshipped to the east coast of North America.

For North Europe-US east coast loops, the rate will increase US$300 per TEU and 20-foot reefer box and $400 per FEU and 40-foot reefer box.

For North Europe-Canada services, the rate will be up $275 per TEU and 20-foot reefer box and $375 per FEU and 40-foot reefer box.

For shipments from Mediterranean to the US east coast, the rate will raise US$300 per TEU and 20-foot reefer box and $400 per FEU and 40-foot reefer box.

For cargo from North Europe to Mexico, the rate will go up US$275 per TEU and 20-foot reefer box and $375 per FEU and 40-foot reefer box.

Said CMA CGM vice president Alexis Michel: "The reefer business is an historical area of focus for CMA CGM, and we are proud to be among the leading shipping lines in that sector. However, levels of investment [boxes and gensets], higher operational costs, higher energy costs, higher service level requirements should lead to greater expectation of revenue from reefer container rather than general cargo. Contrary to expectations, freight rates on reefer cargo in the transpacific are currently below that for dry cargo and, at the moment, they are not enough to cover the costs incurred by the containers."