Maersk to hike Latin American shipping rates

The cost of fuel for the company’s ships has tripled in the last five years while shipping rates have fallen by 10%, leading to quarterly losses or slim profits, Robbert Jan van Trooijen, the company’s CEO for Latin America, told Reuters. Without higher freight rates it would be difficult to recoup the company’s US$2.2bn investment in 16 container ships for its Latin America service, he said.

Maersk has raised its 2012 profit outlook but says its performance will still fall below 2011 levels. The company is looking to Latin America to help reverse its recent financial difficulties and to pay for other large investments in the region, Van Trooijen said.

Latin America accounts for around 14% of the world’s container trade and Maersk has some 15% of the region’s market. Brazil represents approximately 20% of Maersk Line’s Latin American business.