Asia/Europe carriers confirm four-step rate increases next year

Asia/Europe carriers confirm four-step rate increases next year

   Asia/Europe conference shipping lines confirmed that they are planning to raise westbound freight rates four times in 2004, as they predict another year of strong market conditions in Europe’s largest container shipping market.

   The Far Eastern Freight Conference also announced three rate increases in the eastbound Europe-to-Asia trade.

   Westbound rates from Asia (outside Japan) to northern Europe and Scandinavia will rise by:

   * $150 per TEU on Jan. 1;

   * An undetermined amount on April 1;

   * $250 per TEU on July 1;

   * And an undetermined amount on Oct. 1 of next year, depending on market conditions nearer the time.

   Westbound rates from Asia (other than Japan) to the Mediterranean will go up by similar amounts:

   * $150 per TEU on Jan. 1;

   * $150 per TEU on April 1;

   * $250 per TEU on June 15;

   * And an undetermined amount on Oct. 1, to be established by carriers nearer the time.

   The carrier conference said that the westbound container traffic from Asia to north Europe is expected to expand by about 11 percent in 2004.

   In the eastbound direction, the Far Eastern Freight Conference announced three planned, consecutive rate increases for next year, each for $150 per TEU. The increases are scheduled for March 1, June 1 and Oct. 1 of 2004.

   The carriers’ proposed cumulative rate increases for next year, subject to individual negotiation with shippers, follow several rate increases in the Asia-to-Europe trade already implemented this year.