Deep-sea container shipping rates refuse to drop

While airline cargo fuel surcharges globally show signs of coming down, the equivalent charges in the deep-sea container shipping sector are still on the way up – as far as major European trades are concerned.

The Far Eastern Freight Conference has said for the period September 1 to October 17, its bunker adjustment factor (BAF) charges for containers being shipped to and from Mediterranean and west coast European ports will be $766 per TEU and $38.30 W/M LCL (less than container load), compared with current figures of $675 and $33.75.

For cargo to and from the United Kingdom, the north-west Continent, Scandinavia and Baltic Sea region, the new charges will be $766 and $38.30 W/M LCL.

The current figures for that trade are $675, $33.75 and $12/$0.60, respectively.

Meanwhile, lines belonging to the India, Pakistan, Bangladesh, Ceylon Conference have announced that effective September 1, their BAF charges for cargo from and to UK, north-west Continent, Scandinavia and the Baltic will be FCL (full container load) $525 per TEU, LCL $52.50 W/M and breakbulk +146 per cent.

The current charges are $460, $46 and +128 per cent, respectively.

For cargo from and to the Mediterranean, the charges from September 1 will be FCL $500 per TEU, LCL $50.00 W/M and breakbulk cargo +140 per cent, compared with present levels of $435, $43.50 and +122 per cent. Europe Middle East Rate Agreement container shipping lines intend to increase their BAF charge for FCL cargo from and to UK, north-west Continent, Scandinavia and the Baltic from a current $535 per TEU to $600 for the period September 1 to September 30.

One reason for the apparent disparity between the current fuel surcharge policies of the airline and deep-sea container shipping industries is that while the former generally base their charges on weekly/fortnightly indexes, the latter review monthly.