MOL executive sees end of low rates

MOL executive sees end of low rates    "The days of very cheap transport prices are over," a senior executive of MOL told the Containerisation International Freight U.K. conference. Chris Bourne, managing director of MOL (Europe), said ocean carriers’ costs have increased, including for port handling, bunker and the purchase of new containerships. "Stevedores are putting up prices," he told the conference in Liverpool. "Eight-thousand-TEU vessels two years ago cost $80 million. Now prices (are) up to $120 million." MOL’s comments mirrors views expressed last week by Klaus Meves, chairman of Hamburg Sud, who said shipping lines are facing rising costs from more expensive vessel charter rates, fuel, port operations and prices for new containerships. Both senior carrier executives also referred to the added burden of port congestion. Port facilities in many countries require significant development and investment, according to Bourne. Although massive sums have been invested in developing ports in Asia and particularly China, many European and U.S ports are becoming "overly congested," the Japanese shipping line said. "Carriers have even been forced to apply congestion surcharges to cargo moving through the ports of Los Angeles and Long Beach," it said, referring to the transatlantic trade surcharges. Commenting on European port capacity, Bourne said the United Kingdom is "the biggest problem." He lamented the rejection by the British authorities of the plan to build a new container terminal at Dibden Bay, near Southampton, and the lack of any concrete time scale for other important projects, such as Felixstowe South, Bathside Bay and Thames Gateway. "The lack of capacity and subsequent congestion has led to a 40 percent increase in U.K. deepsea freight moving via Rotterdam over the last year, Bourne said. Due to all these factors, Bourne said shippers "need to be prepared for further rate increases." Many trades have already seen steady rate restorations and freight rates will have to continue rising, according to the shipping line.