In an open letter to Maersk Line chief executive Søren Skou, Israel's Plant Production and Marketing Board has hit out at the shipping giant's proposed US$1,500-per-container freight rate increase – due to be implemented at the beginning of 2013–calling it 'disturbing' and 'extreme'.
The letter, sent today (1 November) and signed by the board's general manager Zvi Alon, expressed fear at the long-term impact of the move on growers and shippers, while questioning the fact that another line, CMA-CGM, had also announced a hike in rates just weeks after the Maersk announcement.
'The Israeli Plant Production and Marketing Board is deeply concerned about the application of a US$1,500 per container fee from 1 January, which we find as very extreme,' the letter stated.
'The Board also finds it very disturbing that Maersk `and` CMA-CGM have published the enormous rate increase simultaneously.'
It continued: 'It is difficult for the board to accept the justifications for such an increase, announced by Maersk Line CEO Soren Skou.
'While the Board accepts that profitability is necessary for re-investment in equipment, it feels that shippers of reefer products are being discriminated `against`.
'The board sees no reason that reefer cargo should subsidise the weakness of the dry cargo market, and on other unrelated trade lanes where the container lines have been unable to force rate increases.
'We believe that `the` dramatic decisions you have made shall harm both growers and shippers, due to decreases in agricultural production and trade.'
The letter concluded by calling on Maersk to reconsider increasing rates, and instead enter negotiations with its customers.
'We expect Maersk Line not to ignore traditional customer demands, and to reconsider its position,' the letter concluded.
'We ask a leading shipping company like Maersk to form constructive negotiations, as before, in order to agree on the company's pricing policy.'
