Lines raise Indian subcontinent/U.S. freight rates
Container shipping lines in the Indian Subcontinent Discussion Agreement (ISDA) have announced a revenue recovery program for their 2007-2008 service contracts in the trade from the Indian subcontinent to the United States.
ISDA carriers are recommending a freight rate increase for all commodities in their upcoming contracts of $500 per FEU for shipments moving all-water from the subcontinent to the U.S. East Coast, and $650 per FEU for U.S. inland point intermodal shipments. Other container sizes would be increased according to customary formulas. The guideline increases would also be subject to destination terminal charges of $740 per FEU and floating bunker charges, which are currently $455 per FEU. The planned increases are intended to take effect for contracts commencing on May 1.
In a statement, the ISDA lines stressed the need for revenue improvement in the trade to permit them to continue to invest in the services their shippers have come to expect.
'The subcontinent is a very fast growing trade, and the ISDA lines are constantly upgrading their vessels and services to be able to accommodate that growth,' ISDA said. 'The freight rates need to keep pace with that growth, particularly as operating costs continue to rise every year.'
ISDA members are CMA CGM, Emirates Shipping Line, Evergreen Marine Corp., Hapag-Lloyd, MacAndrews & Co., NYK Line, Shipping Corp. of India, United Arab Shipping Co. and Zim Integrated Shipping.