Container freight rates to West European ports may go up
Karmahom Conference, a cartel of shipping lines controlling shipping in India, Pakistan, Bangladesh and Sri Lanka has announced a rate hike from coming December. According to their announcement, container freight rates in the Westbound sector - UK, North Continent, Scandinavian, Baltic and Mediterranean Ports will increase by US Dollar 150 a TEU (twenty-foot equivalent unit) following a rate restoration. For a forty-foot equivalent unit (FEU) the increase is US Dollar 300. The increased rate levels will be valid until January 31, 2006
Sea freight rates to the UK hover between USD 900 to USD 1050 a TEU and to other west European ports it would be slightly higher. The Karmahom Conference said that its member lines were facing considerable increase in charter rates, which continue to rise dramatically, as well as a worldwide shortage of container equipment (boxes). Further, delays and congestion continue to affect all carriers, and are having a detrimental effect on member lines' ability to operate efficiently.
There has been massive hike in sea freight rates over last few years. Today, charter rate for a 20,000 GRT (gross registered tonnage) container ship is in the range of USD 20,000 - USD 25,000, which was between US Dollar 4000 to 5000 in 2001-02.
Nov 17' 2005
