FEFC SAYS PLANNED RATE INCREASES ARE MINIMAL

FEFC SAYS PLANNED RATE INCREASES ARE MINIMAL

FEFC SAYS PLANNED RATE INCREASES ARE MINIMAL

    The Far Eastern Freight Conference said that freight rates in the
Asia/Europe trade will still be low after the introduction of rate increases of $300 per
20-foot container and $600 per 40-footer on July 1.
    Statistics compiled by the FEFC show that westbound ocean rates from
Asia to northern Europe dived by about 35 percent between 1991 and April 1999.
    Using a shipment of training shoes as an example, the conference said
that the planned $600 rate rise per 40-foot container will only add 4 U.S. cents to the
cost of shipping a training shoe from Asia to Manchester.
    The transportation cost, including terminal handling, inland transport
and ancillary charges, will be about 23 cents per shoe after the July 1 increase, compared
to 19 cents previously. Expressed per 40-foot container, the increased rate will be about
$3,352 per container after July 1, compared to $2,752 at present.
    On July 1, the FEFC will also increase eastbound rates to Asia by $150
per container, irrespective of container size.
    The increases "are part of an on-going program to restore rates to
economically viable levels," a spokesman for the conference said.
    Asia/Europe carriers have reported very high levels of vessel
utilizations westbound.