FEFC prepares shippers for eastbound Asia/Europe tariff rise

FEFC prepares shippers for eastbound Asia/Europe tariff rise    The Far Eastern Freight Conference said Wednesday that its 16 member lines are close to finalizing a revised tariff for the soft Europe-to-Asia eastbound trade.
   The conference’s members are estimated to control about two-thirds of the available Asia/Europe vessel capacity.
   The FEFC said the eastbound trade has been growing steadily for many years and now has an annual volume of about 5 million TEUs. Yet freight rates have not grown at the same level as they have in the westbound market, leading carriers to “question the rationale for providing such a high level of service options to European shippers for so small a return.
   “The weakening of the U.S. dollar and the escalating costs of fuel have hit carriers hard, and the eastbound trade can no longer be considered worthwhile when viewed in isolation. Some drastic action is therefore necessary,” the FEFC said.
   Last month, the conference alerted shippers to a new tariff structure with a revision to be implemented in the Mediterranean/Far East trade, effective Oct. 1.
   The revised Europe-to-Asia tariff will comprise an ocean freight element, subject to bunker and currency adjustment factors (BAFs and CAFs) as well as origin and destination terminal handing charges (THCs). There will also be additional charges such as for the provision of special equipment, charges for serving outlying areas, and for the carriage of hazardous cargoes, among others.
   FEFC Director Rod Riseborough told American Shipper that the final version of the new eastbound tariff is expected to be decided upon by the end of August.
   ” The FEFC lines are confident that this timely revision of the tariff will provide transparency for customers, and that the greater stability of the tariff structure will allow them to sustain the present high levels of service provided in this trade,” the FEFC said.
   FEFC members are ANL Container Lines, APL, CMA CGM, CSAV Norasia, Egyptian International Shipping Co., Hapag-Lloyd, Hyundai Merchant Marine, “K” Line, Maersk Line, Mediterranean Shipping Co., MISC Berhad, MOL, NYK, OOCL, Safmarine and Yang Ming.