Freight rates for Europe to rise by $100

Container freight rates from Indian ports to key European ports will increase by $100 per twenty-foot equivalent unit (TEU) from March 1.

Freight charges from Indian ports to ports in the UK, North Continent, Scandinavian, Baltic and Mediterranean will be increased to $1,250 per TEU and $1,400 per TEU from $1,150 TEU and $1,300 TEU, respectively.

The increase follows the rate restoration programme announced by the India, Pakistan, Bangladesh and Ceylon Conference (IPBCC), a body of shipping lines, at its meeting in London on January 31.

As part of the rate restoration programme for 2008, the current rate levels will increase by $100 per TEU. The increase will be effective from March 1 to May 31, 2008.

"In addition, as part of the business plan, members will keep ancillary tariff items such as special equipment additionals and surcharges under review," according to an IPBCC notice.

The group of 16 shipping lines include ANL, CMA CGM SA, Hamburg Sud, Hapag Lloyd AG GMBH, K Line, MacAndrews & Company Ltd, Maersk Line, MISC BERHAD, CSAV Norasia Liner Services, PNSC, Rickmers, Safmarine, Shipping Corporation of India, UASC, Yang Ming Line and Zim Integrated Shipping Services.

IPBCC member lines currently account for 70-75 per cent of total cargo being moved on the South Asia-Europe sector.