INTRA-ASIA CARRIERS RECOMMEND CHINA/JAPAN CHARGE, RATES

    Nineteen shipping lines in the intra-Asia trade have discussed the introduction of bunker charges and the stabilization of freight rates in the China/Japan trade.
    Members of the Intra-Asia Discussion Agreement, a group of 40 intra-Asian carriers, met with some of their competitors outside the agreement on Oct. 14, at the offices of COSCO Dalian International Freight Co., Ltd. in China.
    The meeting recommended the adoption of a fuel adjustment factor on all IADA corridors from Nov. 1, a spokesman for COSCO said.
"Representatives of all IADA members and non-membership lines agreed to follow this suggestion to cover the arising bunker cost," COSCO said.
    The shipping lines recommended that the fuel adjustment factor and the container yard charges should be collected at destination ports at the same time. The fuel charge is set at 1,800 yen ($17) per TEU in the China/Japan trade and it "will be collected freely by each company" in other intra-Asian trades.
    Freight rates on the Dalian to Japan route have fallen quickly from $350 per TEU to $240 per TEU since July 1999 and the meeting of carriers suggested that shipping lines prevent prices from going down further, COSCO said.