More double-digit rises in freight rates

More double-digit rises in freight rates    OOCL is the latest container shipping line to report double-digit increases in freight rates, after rate hikes were implemented in several trades in the last 12 months.
   Figures reported by OOCL, APL and P&O Nedlloyd confirm that shippers and forwarders continue to see large increases in their freight bills after more than a year of rising freight rates. The higher prices also boost the profits of carriers and help them absorb higher vessel charter and bunker costs.
   In an operational update, OOCL said its overall average revenue per TEU across all trades increased 10 percent to $1,037 in the first quarter, compared with the same quarter a year ago.
   The first quarter is traditionally a weak quarter, and both revenues and rates tend to rise in the second half of the year, particularly after May 1 in the Pacific trade.
   In 2003, OOCL already raised its average revenue for the year by 15 percent to $1,025 from $891 in 2002.
   OOCL’s average transpacific revenue per TEU in the two-way first quarter Pacific trade increased 14 percent to $1,467 from $1,285. Average transatlantic revenue per TEU rose 11 percent to $1,268.
   P&O Nedlloyd said Thursday its average first-quarter freight rate for all routes was up 15 percent to $1,374 per TEU when compared to the first quarter of 2003. In particular, average revenue per TEU in the American trades, covering cargo movements between North America and Asia, Europe, Africa, Australasia, and Latin America, jumped 17 percent to $1,547 per TEU.
   For the year 2003 as a whole, P&O Nedlloyd’s revenue per TEU had already increased 12 percent to $1,287.
   Neptune Orient Lines also recently reported that APL’s average revenue per 40-foot-equivalent unit across all trade routes was $2,528 in the four-week period ended April 2, or 11 percent higher than a year ago.
   The latest increases in eastbound transpacific service contracts, effective May 1, are expected to add to the reported inflation of freight rates. The Trans-Atlantic Conference Agreement, the Far Eastern Freight Conference and other carrier agreements have announced plans for further rate increases later this year.