Shipping alliances propose THC increases of up to 339%…

April 23, 2007 by SwizStick  
Filed under China, QuickNews, Seafreight

 Print This Post

Leave a comment

…in Intra-Asia and Mediterranean-Red Sea trade lanes:

Although the rate rise proposals still need to be negotiated, the shippers’ councils of Hong Kong, Shenzhen and Taiwan were quick with the condemnation. “The increases are totally unjustifiable, and they range from two to nearly four times higher than the current levels of THCs,” said a statement signed by the three councils.
—————————————————————-
The rationale behind the massive hikes is clear: Carriers have been hit by declining freight rates and increasing bunker costs over the last year, with large capacity injections keeping supply ahead of demand on major trade lanes, such as Asia-Europe.
Strong Asia-Middle East trade has seen westbound demand growing at 15 percent a year, although a Drewry report has warned that the Asia-Mediterranean route may soon suffer from serious over-capacity. Intra-Asia continues to lure lines with huge volumes being carried over relatively short distances, and if the THC increase of 238 percent to US$334 per FEU on this trade is accepted by shippers, the lines stand to rake in millions.
Based on Shenzhen port throughput figures, the councils estimated that shipping lines were asking shippers to fork out almost $400 million more annually.

Read the whole thing over at Cargo News Asia.

The end of Airline Cargo Alliances?

Additional Hawaii Rate Increases

Ocean bid tip: diversify your carrier alliances!

Air France to slash jobs