Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Maersk sees unprecedented container shortage

Published 06/17/2010, 02:06 AM
Updated 06/17/2010, 02:07 AM

* Says peak season starting, demand surging in most trades

* Says market situation "unique", sees equipment shortages

* Europe-Asia trade growing 23 pct on year (Adds details, quotes)

COPENHAGEN, June 17 (Reuters) - Maersk Line, the world's biggest container shipping group, said on Thursday a strong rebound in global trade has led to an unprecedented shortage of containers as shipping enters its peak season.

Maersk Line, part of Danish oil and shipping group A.P. Moller-Maersk , announced unusually high peak season surcharges on freight rates from Asia to Europe last week. [ID:nLDE65A0FY]

"The present market situation is unique," Lars Reno Jakobsen, head of Network and Product and member of Maersk Line's management board, said in a statement.

"We are experiencing a demand surge in most trades, which is a development that is both unprecedented and unexpected by us and our customers," Jakobsen said.

The Asia-Europe trade is growing by 23 percent year-on-year, outpacing the market's 3-6 percent forecast from six months ago, he said.

"We expect an even more pronounced and serious shortage of containers in the coming months as we enter the peak season," he added.

After a plunge in the market from late 2008 through last year, the global shipping industry is recovering with world trade.

"Maersk Line expects the equipment (container) shortage to last through the third quarter of this year and will continue to work closely together with all stakeholders, not least our customers, to further reduce equipment turnaround times," it said.

During the slump of 2008-2009, many container shipping and container leasing companies stopped sourcing and producing containers, Maersk said.

"As carriers and shippers did not expect the current demand surge, the necessary equipment has not been ordered in 2010, ultimately resulting in the global shortage in equipment," it said.

In response to the equipment shortage, Maersk Line has begun producing new containers and leasing containers, it said.

It has also re-activated laid-up vessels to help reposition containers as fast as possible from, for instance, the east coast of North America and Latin America to Asia, it said.

Last week, Maersk Line announced a peak season surcharge (PSS) for the Far East-Europe trade applicable from July 2010, Maersk said.

The surcharge will help Maersk recover the higher costs caused by the increased volumes and equipment shortages, such as port costs and costs of extraordinary vessels deployed to reposition containers, Maersk said.

Maersk said it would apply only one peak season surcharge so it would not announce separate surcharges or rate increases in connection with the peak season. (Reporting by John Acher; Editing by Louise Heavens)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.