Far East conference agrees rate hike programme

ALAN PEAT
IT MUST seem to SA shippers that the seafreight rate ball is now firmly in the shipping lines’ court - with the Far East conference (described as “the G8 discussion forum” by the member lines) now having agreed to a series of rate hikes over the next year.
According to internet publication SchedNet and confirmed by a local source the general rate restorations (GRR) will be introduced in five stages between October 2004 and October 2005.
The five stages are: October 1 a GRR of US$100 per TEU, US$200 per FEU and US$10 per revenue ton is to be levied; January 1 an upward adjustment of high cube premium to US$200 per unit will be implemented; from April 1 a GRR of US$200 per TEU, US$400 per FEU and US$20 per revenue ton comes into effect; on July 1 a GRR of US$200 per TEU, US$400 per FEU and US$20 per revenue ton is to be levied by the group; and on October 1, 2005, a GRR of US$100 per TEU, US$200 per FEU and US$10 per revenue ton will be charged to shippers.
There will also be an adjustment to the emergency bunker additional (EBA) as of October 1, which, added Schednet, follows on from a bunker price review in August.
The EBA for a full container load will be US$110 per TEU and US$220 per FEU - and for less than a container load it will be US$6 per revenue ton.
The member lines of the G8 are CMA CGM, CSAV, Cosco, Evergreen Marine, Hamburg Sud, “K” Line, Maersk Sealand, MISC,
MOL, NYK, P&O Nedlloyd and Safmarine.