FEFC SAYS PLANNED RATE INCREASES ARE MINIMAL
The Far Eastern Freight Conference said that freight rates in the
Asia/Europe trade will still be low after the introduction of rate increases of $300 per
20-foot container and $600 per 40-footer on July 1.
Statistics compiled by the FEFC show that westbound ocean rates from
Asia to northern Europe dived by about 35 percent between 1991 and April 1999.
Using a shipment of training shoes as an example, the conference said
that the planned $600 rate rise per 40-foot container will only add 4 U.S. cents to the
cost of shipping a training shoe from Asia to Manchester.
The transportation cost, including terminal handling, inland transport
and ancillary charges, will be about 23 cents per shoe after the July 1 increase, compared
to 19 cents previously. Expressed per 40-foot container, the increased rate will be about
$3,352 per container after July 1, compared to $2,752 at present.
On July 1, the FEFC will also increase eastbound rates to Asia by $150
per container, irrespective of container size.
The increases "are part of an on-going program to restore rates to
economically viable levels," a spokesman for the conference said.
Asia/Europe carriers have reported very high levels of vessel
utilizations westbound.
