Shipping leader Maersk Line is to raise freight rates on its Latin American trade lanes, in the wake of a difficult set of results for the first quarter of the year.
The shipping division of A.P. Møller-Maersk reported this week that it suffered a dramatic year-on-year slump in the first quarter, turning in a loss of US$599m (€467m) from a profit of US$424m (€331m) in the year-earlier period.
With costs for fuel and container costs growing, the group has opted to increase rates 'to improve financial returns on key shipping routes, boost profitability and safeguard the continuity of service levels on Maersk Line’s existing routes', Lloyds List reported.
Robbert Jan Van Trooijen, CEO of Maersk Line Latin America, said: 'The shipping industry as a whole is losing money as returns have lagged the cost of capital for five years. By increasing rates, we are looking to strengthen existing routes and ensure a healthier basis for our continued investment in the region.'
