Hyundai Merchant Marine said Tuesday it plans to hike rates on Canadian exports to Asia from Dec. 1.
The increases, $160 per 20-foot container and $200 per 40-foot container, apply to cargo destined for Japan, China, Korea, Taiwan, Hong Kong, Malaysia, Philippines, Singapore, Thailand, Indonesia, Vietnam and Cambodia.
“This general rate increase is necessitated by the fact revenue on export boxes from Canada to Asia is down over 17 percent year-over-year, and the current rate levels are not sustainable”, said Lamont Petersen, vice president of transpacific westbound trade for Hyundai.
Petersen also pointed out the average gross weight of an export load from Canada is 14 percent heavier than the average load from the United States. Therefore, she said, Canadian cargo actually reduces laden capacity and thereby reduces potential contribution margins on the voyage. - Eric Johnson