HAPGA-LLORD'S arbitrary charge news by Hebei Longsheng
| HEBEI LONGSHENG METALS AND MINERALS CO., LTD Hapag-Lloyd’s arbitrary charge could boost costs for Hyundai, Syngenta in Brazil Container-line Hapag-Lloyd has issued an "Arbitrary Charge Origin" notice for deliveries from Asia to Latin America. This increases the costs for onward transportation of containers away from ports to their final destination. It may help boost the container line’s profitability in the face of shipping rates from China to South America which have fallen by 13.9% in Q2 so far after an 8.0% slide in Q1. Weak demand has been one reason. Imports to Brazil from Asia fell by 4.3% year over year in April after rising by 4.2% in Q1. Hapag-Lloyd’s shipments in April fell by 4.2% though it had lost market share in Q1 and throughout 2019. The firm likely lost market share to CMA-CGM whose volumes climbed 18.1% higher in April after rising by 16.3% in Q1. It remains to be seen whether other liners will follow Hapag-Lloyd’s example. In the meantime the ACO may increase costs for users of the Asia-Brazil routing including auto-parts shipper Hyundai Glovis and agricultural chemicals producer Syngenta. By Hebei Longsheng Metals & Minerals Co,. Ltd. |
