China Shipping Container to add surcharges on cargo-box shortage
The shipping line will levy an "emergency equipment surcharge" of $400 per forty-foot box from July 1, Deputy General Manger Zhao Hongzhou said yesterday in Shanghai after a shareholders meeting. The company introduced a peak-season surcharge of the same amount on Asia-Americas routes from June 1, he said.
AP Moller-Maersk A/S, the world's largest container line, has forecast an "unprecedented" shortage of cargo boxes because of a surge in shipping demand amid the global economic revival. Supplies of new containers plunged worldwide last year as shipping lines pared orders amid a trade slump.
"The demand recovery has led to a shortage of boxes," Zhao said. The surcharge will help the company address the shortfall before shipments are disrupted, he said.
Maersk has increased orders for new containers and re- activated vessels parked during the recession to help move empty boxes from the U.S. to Asia. Containers are used to ship manufactured goods such as furniture, clothes and auto parts from factories in China to shops in the U.S. and Europe.
The demand pick-up and surcharges are helping boost earnings at shipping lines. Nippon Yusen K.K., Japan's largest shipping line by sales, this week said that its container unit may beat its annual profit target helped by peak-season levies.
China Shipping Container's "profitability is improving as demand recovers," said Zhao, who declined to elaborate further. The shipping line had a loss of 6.49 billion yuan ($955 million) last year and a first-quarter loss of 192.7 million yuan.
The company fell 1 percent in Hong Kong trading yesterday to close at HK$2.90. It has risen 3.6 percent this year compared with a 5.4 percent decline in the benchmark Hang Seng Index.
Industrywide container volumes on Asia-U.S. routes rose about 13 percent in the first quarter from a year earlier to 1.27 million 40-foot boxes, according to the Transpacific Stabilization Agreement, a shipping group.
- China, Laos and Thailand Railway Starts, Yunnan International Transportation System Takes Shape2010-07-14
- China, Laos, Myanmar and Thailand Getting Closer for the Port Construction and Shipping Cooperation in Lancang - Mekong River2010-07-14
- China's COSCO takes over container business at Greek port2010-07-13
- China June CPI may continue to fall2010-07-12
- China's business climate index gains in Q22010-07-09
- China reports 48% increase in H1 auto sales2010-07-09
- Chinalco eyes stake in mine in Mongolia2010-07-09
- China reduces rare earth export quota by 72%2010-07-09
- China's Moutai, the new trend for investment2010-07-09
- China's full-year auto sales seen to rise2010-07-08
- China to develop 13 solar power projects in western region2010-07-07
- China to issue 29.97 billion yuan of book-entry T-bonds2010-07-07
- China's H1 auto sales up 30% year-on-year to 7.18m2010-07-05
- China's gold output up 6% in Jan-May2010-07-03
- China's Qingdao Port sees foreign trade throughput up 21%2010-07-01
- China Huadian plans $14.7b energy projects in Xinjiang2010-07-01
- China to Invest RMB800m to Support Development of Service Outsourcing Enterprises2010-06-29
- China motorcycle exports top 3 mln units in first 5 months2010-06-17
- China takes heart from trendsetter FDI figures2010-06-14
- China's May exports climb nearly 50%2010-06-10
- China's eighth environment exchange opens2010-06-03
- China may unveil private equity regulations this year2010-06-01
- China's ZTE eyes 30% revenue growth2010-05-18
- China gives private aye for key state companies2010-05-14
- China sets foreign trade goal over next decade2010-04-19
- China's foreign ETF plan signals market reform2010-03-09
- China - ASEAN Free Trade Area business portal was officially opened2010-01-12
- China's investment in ASEAN to rapidly increase2010-01-08
- China to become 2nd largest trade partner of Philippines as recovery takes hold2009-12-31
- Sime Darby- Sime Darby to expand China operations2009-12-23
- China’s Absorption of FDI in January-October 20092009-12-06
- China's Huawei to set up training centers in Indonesia2009-11-13
- China completes2009-09-28
- China still top destination for FDI2009-06-10
- China-South Asia Trade to exceed US$ 75 billion by end of 20102009-06-08
- China urged for investment in South Asian Countries2009-06-07
- China makes breakthrough in coffee exports2009-03-01
- China investment guide2006-07-18