Get ready for freight rate hikes

AS THE price of crude continues to hover near the US$100 per barrel level and Opec heads of state prepare to debate whether or not to increase oil prices further, imminent freight rate hikes are a dead cert. Shippers should therefore brace themselves to pay more for shipping their cargo as a good many carriers – Evergreen, Singapore’s NOL group and COSCO Container Line – report sound financial results on the back of higher rates. Recently-appointed Safmarine Container Line chairman Eivind Kolding, on his first visit to South Africa in his official capacity last week, told FTW that rate hikes were definitely on the cards. While there was no specific reference to the trades that would be most affected, supply and demand will dictate the levels. “There is no other way with the very high oil price we have now, which has not really been passed onto our customers – so higher prices will certainly impact on them.” Kolding, also CEO of Maersk Line, said he expected Maersk to return to profitability by 2009.