The world's third largest shipper, Evergreen Marine Corp, and other major Taiwan shippers raised Asian and European freight rates by about 10 percent on Friday to capitalise on booming China exports. Executives said freight charges for cargo to the United States may rise in May, and some forecast another possible rise in intra-Asian and European rates in the second half of the year.
"It's the China effect. Its exports of manufactured goods is like a wave, especially to the United States, and also more and more to Europe," said an official at Yang Ming Marine Transport Corp, Taiwan's second largest shipper.
Container rates have jumped 15 to 20 percent over the past six months, helped by fast-industrialising China's export boom and a tight supply of ships world-wide.
But analysts say a new supply of ships in 2005 will put pressure on rates, with even more capacity slated for 2006 and 2007 likely to cause a contraction in container charges.
Yang Ming lifted rates for cargo within North and East Asia by $100 per twenty-foot-equivalent units (TEU) on Friday, and raised shipments to Europe by $250 per TEU, said the official who declined to be identified or to give an exact percentage increase.
Rates to the US West Coast would increase by $285 per forty-foot-equivalent units (FEU) on May 1, the executive said.
The Yang Ming official expected intra-Asian rates to be raised again in September, while European charges could also be revised upward between July and October.