Maersk Line Felixstowe

Container carriers have announced they will increase rates on shipments from India to the US and Europe this month to capitalise on an upswing in demand.

Shipments to Europe will increase by US$100-300 for 20ft containers and US$300-600 for 40ft containers, LiveMint.com reported.

It currently costs around US$800 to ship a 20ft container from India to Europe and US$1,500 per 40ft container.

From India to the US, rates are currently US$1,300 for a 20ft container and US$1,800 per 40ft container.

Maersk Line, Mediterranean Shipping Co. SA, CMA CGM SA, Hapag Lloyd AG and Shipping Corp. of India Ltd (SCI) are among the carriers to announce the hike.

Some carriers have also introduced a ‘piracy-risk' surcharge for shipments from India to the US and Europe that have to pass through the Gulf of Aden, in the Arabian Sea between Yemen and Somalia.

Piracy is seen as a growing problem for the container shipping industry in that region and in April last year Somali pirates hijacked the cargo ship Maersk Alabama, creating a stand-off that lasted four days and made headlines around the world.

MSC and SCI are among the carriers to announce the charge, which is US$40 per 20ft container.

Major container carriers are estimated to have lost US$20bn last year as the global recession hit hard and analysts believe the new charges could slow down economic recovery.