CMA CGM in major revenue restoration program

CMA CGM has announced a major revenue restoration program starting from March 1.
“In 2011, the unprecedented decrease of Freight rates coupled with the sharp increase of bunkers and with the deterioration of operational conditions in Asia has severely impacted the results of all carriers operating on the Asia to Europe Trade,’ the global carrier said.

“The tendency to quote “All in “ Rates including surcharges such as BAF, CAF, Aden Gulf surcharge, Suez Surcharge, CSF has left carriers without any proper coverage of these costs.
Besides, the adverse weather conditions (the 6 main ports of Central and North China have been closed 7955 hours / 331 days in 2011 because of extreme weather conditions) and the decrease of productivity in some Asian Ports due to an emerging congestion have forced carriers to speed up vessels on the westbound leg to meet berthing windows in Europe and Suez Canal convoys. Because of Transit time and schedule reliability constraints, bunker consumption has increased at the worst moment offsetting completely the benefits of Slow steaming on the Eastbound leg,” CMA CGM said.
It said the present level of freight rates is insufficient to cover ships costs including port and Canal costs as well as bunkers costs.
Consequently, CMA CGM has decided to apply the following increases effective 1st March 2012 on the Asia to Europe/Mediterranean trade:
=Rate Restoration of usd 200 / Teu
=Interim Fuel Surcharge of usd 550 / Teu.
This IFS will vary proportionally to the CMA CGM BAF on a monthly basis up or down.
These increases will be applied as follows:
=Origin Range: From All Asian ports (including Japan, South East Asia, Colombo and Bangladesh)
=Destination range: To all Northern European ports (including UK and the full range from Portugal to Russia), to West Med, Adriatic, East Med, Black Sea and North Africa.
=Cargo: Dry cargo, OOG’s, Paying empties, Break-bulk and Reefer cargo.
=Date of application: 1st March 2012 on board date