TAIWAN's biggest shipping line, Evergreen Marine Corp, has revealed that it will increase freight rates on its Asia-Europe routes steadily this year, starting April 1, reports the Taipei Times.

The company is now increasing rates US$300 per TEU from April 1 and plans further hikes in June and August, Evergreen chairman Arnold Wang told journalists in Taipei.

Freight rates on Asia-Europe routes, which are negotiated quarterly, are now down as much as $500 per TEU from the fourth quarter. Current rates are US$850 per TEU. Break-even rates even are reckoned at $1,100 per TEU.

Evergreen Marine is the operator of Asia's largest container shipping line, and the fourth largest globally.

Mr Wang said capacity on the Asia-Europe/Mediterranean trades had been reduced by 24 per cent from 420,000 TEU per week to 320,000 TEU per week and would continue to shrink.

Mr Wang said he expects improvements in load factors after capacity cuts and factories return to full work after Chinese New Year.