Hyundai increasing reefer rate
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Hyundai increasing reefer rates

                 Thursday, December 07, 2012

   Hyundai said it will increase all refrigerated cargo rates by $1500 per unit on Jan. 1.
   The rate increase will apply across the board to all commodities from the U.S. and Canada to Asia including the Middle East, Indian Subcontinent and Far Eastern Russia.
   The South Korean carrier said it "must increase contribution margins in this market segment in order to justify the capital investment necessary to increase in our reefer fleet to keep pace with brisk market growth and higher demand for U.S. refrigerated products.
   "In fact, HMM must invest $120,000 to purchase six reefer containers to maintain a fleet size adequate to support a weekly cycle volume of just 1 laden box from the USWC to Asia. That’s a ratio of 6:1 (6 containers to produce 1 load). In this capital intense market segment, ocean rates have not kept pace with the myriad of costs associated with carriage of refrigerated cargo," the line explained.
    Several shipping companies have announced big reefer rate hikes in recent months, following the lead of Maersk, which made an announcement in September. See "The Big Squeeze" in the November issue of American Shipper

 
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