[ FEFC Sets Rate Hikes for 2000 ]

The Far Eastern Freight Conference(FEFC), at a principal meeting in Ho
ng Kong on Tuesday, decided to implement a rate restoration of US$150
and $250 per 20-foot container, with effect from April 1 and August 1,
westbound cargoes from Asia to Europe.
However, the freight conference held off making a decision concerning
westbound cargoes from Japapn and eastbound cargoes from Europe to Asi
a because rate restorations were implemented for these trades on Octob
er 1.
In related news, the Asia Westbound Rate Agreement(AWRA) governing wes
tbound trade from Asia to Europe carried out rate restorations of $200
per 20-foot container and $400 per 40-foot container on January 1 thi
s year ; $150 per 20-footer and $300 per 40-footer on April 1; and $30
0 per 20footer and $600 per 40-footer on July 1, in view of the rapid
growth of westbound cargoes.
In addition, the AWRA, in anticipation of the faster growth of westbou
nd cargoes next year, has decided to next year, has decided to impleme
nt a further rate restoration in two stages.
Regarding eastbound cargoes to Asia as well, the Eastbound Management
Agreement(EMA) implemented a rate restoration of $200 per 20- and 40-f
oot container the same day.
Because these rate hikes were carried out ony recently, the FEFC has d
ecided to draw a conclusion on further rate restoration for these trad
es after ascertaining the effectiveness of the latest rate increases d
uring future consultations.
Moreover, ina bid to cope with a sharp surge in bunker oil prices, the
AWRA and the EMA have decided to introduce a bunker adjustment factor
(BAF)which will take effect from November 15.