India-Europe shipping body hikes freight rates

The India Pakistan Bangladesh Ceylon Conference (IPBCC), the consortium of shipping lines that controls the trade between India and Europe, has hiked freight rates ranging between $100 per TEU (twentyfeet equivalent unit) and $300 per FEU (fortyfeet equivalent unit) from June 1.

The state-owned Shipping Corproation of India is also a member of the conference. IPBCC is popularly known as the Karmahom Conference and the hike has been officially described as a rate restoration.

The European union is India's largest trading partner. The prevailing freight rates are between $850 and $900/TEU.

The conference has hiked the westbound freight rates by $150/TEU and $300/FEU. Eastbound freight rates have been hiked by $100/TEU and $150/FEU.

The westbound freight rates, which are valid till August 31, are from Mumbai, Mundra, Kandla and Karachi as well as other ports within this range to the UK, north continent, Scandinavian, Baltic and Mediterranean ports.

Eastbound freight rates, effective till September 30, are applicable between UK, north continent, Scandinavia and Baltic ports to India, Pakistan, Bangladesh and Sri Lanka.

"The increase is absolutely necessary to cover the large increases the lines are facing in the supply of containers and vessels, and to ensure that there is sufficient capacity to provide the high quality, frequent and direct sailing that India requires on the trade with Europe," said David Halliday, chairman, IPBCC.

The members of the IPBCC are CMA CGM, Contship Containerlines, Ellerman, Evergreen, Hapag -Lloyd, K Line, Malaysia International Shipping Company, MacAndrews & Company, A P Moller Maersk Sealand, Norasia Container Lines, Pakistan National Shipping Company, P&O Neddlloyd, Rickmers Linie, Safmarine Container Lines, Shipping Corproation of India, United Arab Shipping Company, Yangming Marine Transport Corproation, and Zim Israel Navigation.