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In a move aimed to to strengthen the overa[ds_preview]ll feeder rate level, Maersk‘s subsidiary Seago Line has announced a General Rate Increase across all of its markets.

Soren Castbak, CEO of Seago Line, told HANSA, »After past years’ erosion in freight rates in the intra-European trade, we are now at a stage where freight rates are at unsustainable levels. Adding to that, the ingredients of increasing fuel prices and negative rate of exchange developments make a loss-giving cocktail for Seago Line as an intra-European shipping company. I believe that the sustainability of dedicated intra-European transport solutions by sea is of key importance to the competitiveness of our customers. For us to continue to develop and maintain quality transport solutions by sea, we need to restore intra-European freight rates to sustainable levels.«

The container shipping company said trading conditions are still subject to unacceptable rate levels and the current situation is unsustainable in the long term. It added, the intra-European trading conditions are exceedingly affected by the increasing bunker prices, devaluation of the Euro and the British Pound which have a negative impact on the ability to maintain long term and sustainable service offerings.

»As Seago Line strives to continue to offer its customers a broad portfolio of reliable services, it announces an increase in FAK rates (Freight All Kinds) with an effective start date from 1st of March 2017«, it was stated. The new FAK rates will include the Basic Freight Rate (BAS) and the Bunker Adjustment Factor (BAF) but will be subject to Handling Charges (both import (IMP) and export (EXP)) »as well as subject to other applicable surcharges, including local charges and contingency charges«.

The rate increase is covering all container types on several Seago Line trades: for example routes from Turkey, Greece and Black Sea to North Europe; from North Europe to Turkey, from Greece and Black Sea; from North Europe to South East Mediterranean; from West Mediterranean to North Europe; from North Europe to West Mediterranean as well as intra-Mediterranean routes.

Seago Line said, its announcement of rate increase is »necessary to continue to operate its services with the high level of reliability that its customers have come to expect. The company operates 66 vessels covering more than 70 ports.