[ FEFC Defends New Year Rate Restrations ]

The principals of the Far Eastern Freight Conference’s (FEFC) member
lines met recently in London to review the market in the light of the
rate restorations announced previously for Jan. 1, 1998.
The new rates for containers from that date will be as follows:US$ 75
for 20-footers, $150 for 40-footers westbound; $125 for 20-footers, $1
75 for 40-footers eastbound.
According to the FEFC volumes moving westbound are currently the highe
st ever seen in this trade, and there is no indication of let-up of th
is “exceptionally strong market” in the coming year.
Eastbound, the overall volumes for 1998 are expected to increase furth
er even though the prevailing uncertainty concerning the economies of
Asia may have some effect, said the FEFC.
The freight conference is of the opinion that, despite high capacity u
tilization, “rates are still at such low levels that the lines are fa
r from receiving adequate compensation for the standard of service whi
ch they provide.
“In view of this,” the conference continued, “the lines have confir
med that the modest rate restorations already announced will be mainta
ined and that during 1998 they will continue their policy of steady re
venue recovery.”