Freight operators project recovery in rates

Having lost an estimated $20 billion globally last year, shipping lines have expressed the need to increase tariffs to offset losses. (DENNIS B MALLARI)

Global container freight operators are eyeing a rate increase as they gather some steam after being caught up in stiff competition and the economic turmoil that rattled economies big and small.

Having lost an estimated $20 billion (Dh73.4bn) globally last year, shipping lines have expressed the need to increase tariffs to offset losses.

Rates across the trans-Pacific, Asia or Europe routes being low, shipping lines are in a bad shape.

With 11.3 per cent of ships lying idle, and faced with a shake-up in the industry, 2010 could well be the year with multiple challenges.

Cut-throat competition has forced many to play on their previous rates and consequently suffer.

However, there seems to be a consensus on the need for all the players to increase their rates and pump in more energy into the sector, according to industry analysts who spoke to Emirates Business.

They say that 2010 is likely to be healthier than 2009, especially in the Gulf and Middle East, which has fared better than the rest.

Gearing up for recovery and mobilising finance would be the big challenges the industry needs to overcome.

 

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