A large number of container shipping companies have, over a very short period increased the tariffs for the transport of containers from the Far East to Europe. .
Illogical
As the supply of ships and containers very often is larger than the demand, the price increases are illogical in the opinions of some. The prices for sea transport are low because of the large increase in capacity, for which the shipowners themselves are responsible, according to EVO, The organisation is of the opinion that the EU carefully looks at this unprecedented development in the market and will intervene in case irregularities become apparent.
Increase of almost 100 percent
Increase of almost 100 percent
The increases in the price of container transport started on 30 January as a result of an announcement by Maersk. The container shipping company wants to increase its tariffs by 775 dollar per twenty foot container with effect from 1 March. Shipping companies Hapag Lloyd, MOL, NYK, MSC and COM during the following days announced similar increases. These shipping companies together control more than 60 percent of the supply on the trade route to the Far East
Unnaturally high prices
Unnaturally high prices
According to EVO shipping companies cannot justify a price increase like this in the present market. "Shippers know the market for container transport from beginning to end. Presently the offer of vessels and containers is too large compared to the supply of goods to be transported. Market logic therefore would expect the price of container transport to decrease. If shipping companies without exception increase prices in such a market, something does not make sense. Then they force all shippers to pay unnaturally high prices. There are hardly any alternatives. The smaller shipowners, who have not as yet increased their tariffs, do not have sufficient capacity to handle the supply from the the large shipping companies."
Source: EVO
Source: EVO