Danish liner major Maersk Line plans to raise freight rates from Asia to Northern Europe by USD 400 per 20-foot equivalent unit (TEU) from April 1st, the company announced Tuesday.

The rate increase will also be introduced on the Far East Asia to Mediterranean service worth USD 500 per TEU, excluding Japan and Syria.

The increase would take rates up by 190 percent on the current level, Reuters reports, deeming it as “loss-making.”

Maersk follows in the footsteps of its counterparts Mediterranean Shipping Company (MSC) and France’s CMA CGM that also announced rate hikes from Asia to Northern Europe worth USD 500 per TEU, taking effect on April 1st.

The world’s largest container shipping company, Maersk Line, has been affected considerably by the market downturn in the second half of 2015 as the company’s average freight rates dropped by 16% between 2014 and 2015. This resulted in a revenue drop of 13%, which was only partly offset by lower costs, pushing Maersk Line’s EBITDA down by 21%.

World Maritime News Staff