| Come December, westbound ocean frieght rates will go up by $150 for a 20 ft container. |
| The hike will be just double for 40 ft containers. Confirming the development, Umesh C Grover, chairman (India) of India Pakistan Bangladesh Ceylon Conference (IPBCC), the apex association of container shipping companies, said the increased rates would also attract winter surcharge of euro 50 per 20 ft equivalent container units (TEUs) for cargo moving to and from St Petersburg (Russia) from December 1 as the fuel charges have risen by over 65"�70 per cent this year. |
| "The hiring cost of vessels has considerably increased and the industry is also facing a worldwide shortage of container equipment. The charges to ply in the Suez Canal has grew over 3 per cent. The combined effect is that a vessel of 2500 TEU has to pay over $ 250,000 for one-way voyage. The factors led to the rate hike," Grover said. |
| The rate hike would mean shipping cost to destinations including UK, North continent, Scandinavian, Baltic and Mediterranean ports are set to shoot up. Textiles, machinery, dyes & chemicals, auto ancilliaries and grains are the key commodities being traded between India and European destinations. |
| The members of IPBCC include national flag carrier the Shipping Corporation of India (SCI), P&O Neddloyd, Malaysian Shipping Corporation Berhad, Maersk Sealand, K Line, Hamburg Sud, Hapag -Lloyd Container Line and Evergreen Marine Corp. |
| "The container shipping trade is clearly dominated by overseas shipping firms. SCI has very small presence in container shipping," analysts pointed out. |
| Moreover, the delays and congestion continue to affect all container shipping lines and are having a detrimental effect on IPBCC member lines ability to operate efficiently, he said. |
| Analysts said the vessels need to burn more fuel once its enters into Baltic area where the temperature is -35 to -45 degree celcius. |
| The vessel would have to break the ice in the ocean as the winter sets in. |
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