India-UK freight rates to rise 10-15 per cent

Freight rates from India to the UK will go up by 10-15 per cent, starting from October, with the India Pakistan Bangladesh Ceylon Conference (IPBCC) "" a platform for shipping companies from these countries "" taking a decision to this effect.

Cargo operators, who are reeling under tremendous margin pressure on this route, hope to recover some of the cost hike through the increase in freight charges.

Though the decision is bound only to IPBCC member lines, this will have a substantial impact as the conference members handle 75 per cent cargo moving from the Indian subcontinent to Europe.

The container shipping conference has increased freight charges by $75 per 20 feet container and $150 per 40 feet container for trade from the UK, North Continent, Scandinavian and Baltic ports to Indian ports.

At present, the rates are $650 for a 20 feet container and $1,000 for a 40 feet container.

Shipping Corporation of India (SCI), Maersk, Hamburg Sud, K Line, Hapag Lloyd, Contship and CMA CGM are some of the Indian members of the IPBCC, which have already increased freight rates for west-bound trade from September.

The increased rates will be valid till February 28, 2007. "The operating costs of carriers have gone up with high fuel costs and congestion at ports. This has prompted carriers to increase charges," IPBCC executives said.

The level of containerisation is growing over 75 per cent as the handling cost is lower for containerised cargo against break bulk items. The main containerised cargoes are garments, electronic goods, agro products, machinery parts, leather and jute products.

According to industrial analysts, ports are witnessing many break bulk cargoes such as rice, maize, glass, granite, garmet sand, soya, cement, banana, cotton and green coffee beans. Also, flowers are now moving in containers.