Maersk to increase Asia-Europe rates

Global - Maersk Line has announced it will adjust freight rates on services from Asia to the Mediterranean and from Northern Europe to North Africa and the Mediterranean.

The company said it will raise freight rates on services between Europe and Asia by US$250 per TEU (20 foot container unit) starting 1 June and by US$100 per TEU on the Europe and Mediterranean route from 15 May.

Last week, Michael Pram Rasmussen, chairman of A.P Moller-Maersk said at an annual shareholders meeting that container shipping rates had dropped to unsustainable levels, particularly on the Euro-Asia trade, the International Business Times reported.

"Trading conditions for the carriers operating in these markets are still subject to unacceptable rate levels and the situation is unsustainable in the longer term," Maersk Line said in a statement.

The shipping industry has seen a dive in freight rates and volumes amid the global economic downturn.

The rate increases are understood to be necessary for Maersk to operate its line services at current standards.