And they say Germans have no sense of humour!!

 And they say Germans have no sense of humour!

We have received news that major German shipping line Hapag-Lloyd has announced plans to increase rates on the Asia to Europe trade by US$500 per TEU in June and on top add a peak-season surcharge.

Surely this is a (not particularly funny) joke? 

We are fully aware that shipping lines in the major liner trades are making insufficient returns but this is mainly due to their own folly (as usual). Like sheep they all placed orders for ever larger ships and flooded the trade lanes with additional capacity at the same time as demand fell.

Hapag Lloyd are adopting a King Canute attitude (*)

The only thing that will cause rates to rise to a more sustainable level is if the lines make a concerted effort to cut capacity to bring it in line with demand. It’s basic economics.

(*) - for those unfamiliar with English history…. King Canute the Great, the legend says, sat on his throne on the seashore, waves lapping round his feet. Canute had learned that his flattering courtiers claimed he was “So great, he could command the tides of the sea to go back”.

Do not forget to subscribe to this blogs RSS feed!