China shipping lines rebound on rate hikes, demand

A revival in cargo demand from the US and Europe has seen freighting companies, including China Shipping Container Lines, break even on some routes after raising rates following months of losses, the South China Morning Post reported. After three separate rate increases on the Asia-Europe shipping lane between September and November, China Shipping said it was now breaking-even on the route by charging US$1,200 per 20-foot equivalent unit (teu), compared with US$800 in August. "We will try to raise rates again by US$150 to US$200 per teu in December," said Huang Xiaowen, China Shipping’s managing director. "If the global economy continues to recover, I am confident that all the trade lanes could return to the black in the third quarter of next year." Rates on transpacific routes to the US are still down as they are traditionally only reviewed once a year in May.