THE BATTLE between shipping lines and shippers over rate hikes, bunker adjustments and currency adjustments is ongoing.
While Wharf Rat this week (see page 12) has a go at shipping lines over their attitude to Portnet's automatic annual hike while they have increased rates to Europe, USA and the Far East by even greater percentages, shipping lines provided a very different perspective in conversation with FTW this week.
According to one well-placed source, the bunker surcharge covers maybe one third of the additional cost of bunkers. And while the price is beginning to firm following the agreement by OPEC to increase output volumes, the effects are likely to be felt only three to six months down the line.
In the interim the lines continue to carry the cost.
While shippers on the Far East route were faced with a general rates increase in July, followed by a peak season surcharge, followed by a bunker surcharge, another source points out that even with these increases freight rates are still lower than they were ten years ago.
Shippers who have been using pre-increase levels to calculate their profit margins are not living in the real world, he said.
We are no longer operating in a protected market and importers and exporters must learn to compete with the international world or face the consequences.
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