Maersk to Double Shipping Rates
Owner of the world’s largest shipping company, A.P. Moller-Maersk, is planning to double freight rates in July despite market weakness that has seen prices fall substantially since March.
The weak global economy and an increase in orders for new freighters put in by major players that coincided with the 2008 financial crisis, have hammered shipping in the past five years. The group who owns the Maersk Line vessels, which make up around 15 % of the world’s shipping capacity, said that it has rebounded from a $599 million loss to a $204 million profit in the first quarter, as reported by Reuters.
Maersk and other big players are now trying to raise the industry’s volatile rates, after a recent decline in the past few months took its toll. The company cut its forecast for a rise in demand in 2013 from 4-5% to 2-4%.
"To be honest, we just have to get used to the fact that these are harder times, and that there will be harder times ahead," Andersen said at a teleconference.
Maersk is expected to increase its shipping capacity substantially when it receives 20 new mega vessels later this year.
