FEFC SAYS PLANNED RATE INCREASES ARE MINIMAL

FEFC SAYS PLANNED RATE INCREASES ARE MINIMAL

    The Far Eastern Freight Conference said that freight rates in the Asia/Europe trade will still be low after the introduction of rate increases of $300 per 20-foot container and $600 per 40-footer on July 1.
    Statistics compiled by the FEFC show that westbound ocean rates from Asia to northern Europe dived by about 35 percent between 1991 and April 1999.
    Using a shipment of training shoes as an example, the conference said that the planned $600 rate rise per 40-foot container will only add 4 U.S. cents to the cost of shipping a training shoe from Asia to Manchester.
    The transportation cost, including terminal handling, inland transport and ancillary charges, will be about 23 cents per shoe after the July 1 increase, compared to 19 cents previously. Expressed per 40-foot container, the increased rate will be about $3,352 per container after July 1, compared to $2,752 at present.
    On July 1, the FEFC will also increase eastbound rates to Asia by $150 per container, irrespective of container size.
    The increases "are part of an on-going program to restore rates to economically viable levels," a spokesman for the conference said.
    Asia/Europe carriers have reported very high levels of vessel utilizations westbound.