Container rates increase

Container costs for main ocean services will increase again this month. Domestic shipping companies will continue to prosper while trading companies will be hit by the increasing transportation costs.
FEFC (Far East Freight Conference) increased ocean fees between Asia and Europe by 150 dollars per TEU (20 foot container), 300 dollars per FEU (40 foot container) from April 1. The conference will also hike fees again in July and October. By the end of 2004, service costs will have skyrocketed to 2,500 dollars from 1,600 dollars per TEU at the end of 2003.
Meanwhile, IRA (Informal Rate Agreement) increased container rates by 200 dollars per TEU and 400 dollars per FEU between Asia and the Middle East from April 1.
TSA (Transpacific Stabilization Agreement) will increase container costs by 450 dollars per FEU for services between Asia and the U.S. west coast from May. Cost in this route will increase to 2,800 dollars from 1,900 dollars at the end of last year because the agreement will impose PSS (Peak Season Surcharges) from the middle of June to the end of October.
CTSA (Canada Transpacific Stabilization Agreement) will increase container rates to 450 dollars per TEU from May. YSLC (Yellow Sea Liners Committee) and IADA (Intra Asia Discussion Agreement) are considering rates increases.
An insider from one shipping company said, "Rates decisions of shipping agreements have no binding power but are more of a guideline. Many shipping companies keep them. Rates increases will continue in this year," and added, "We understand the reasons why trading companies are discontented, but domestic shipping companies have to keep the regulations with shipping companies in other countries."