The India-Pakistan-Bangladesh-Ceylon Conference (IPBCC) will from March 1 increase freight for exports to Europe by 300 dollars for a 20-foot container and 600 dollars for a 40-foot container. The decision to implement a general rate increase (GRI) was made at a meeting of the IPBCC, which was attended by all member shipping lines, operating between Asia and Europe.
This is the second GRI for exports to Europe in just three months. The last freight increase was announced in December 2004 when the freight was increased by 150 dollars for a 20-foot container and 300 dollars for a 40-foot box.
The objective of the new GRI is to sustain the dwindling freight rates, which declined due to slow down in cargo movement during the current months.
The meeting expressed the hope that the cargo movement was expected to accelerate from March and a general rate increase (GRI) would save the lines from incurring losses due to the depressed freight rates.
The IPBCC generally announces a GRI after every quarter in a year with a view to sustaining the declining freight rate depressed due to slow down in cargo movement as well as stiff competition among the lines to attract more business.
Meanwhile, amidst news of all round increase in freight, there is a good news for the exporters that the shipping lines have reduced bunker (fuel) surcharge (BAS) from 85 dollars to 80 dollars for a 20-foot container for the current month for exports to the Europe.
The BAS is reviewed by the shipping lines on monthly basis and adjusted according to the fluctuations in oil prices in the world market.
In January, the BAS for exports to Europe was reduced from 100 dollars to 85 dollars per 20-foot container.
The shipping lines had earlier reduced the BAS for exports to the US from 146 dollars to 100 dollars for a 20-foot container from January 1.