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In the light of escalating oil
prices and looming uncertainty in
the trade, the Far Eastern Freight
Conference, that covers the trade
between Asia and Europe, has given
notice that the bunker adjustment
factor (BAF) will be raised to US$97
per TEU during March from the
current level of US$70 per TEU.
The conference has also reminded
shippers that Eastbound rates (from
northern Europe to Asia) will
increase by a recommended US$250 per
container on March 1.
From the Mediterranean, rates will
go up by US$200 per container.
The new prices will be valued until
the end of May and it is expected
that the Conference will seek more
rate increases in intervals during
the remaining part of the year.
Beginning April, Wesbound rate (from
Asia to Europe) which was increased
in January this year, is set go up
again in April 1 this year.
Several other conferences are taking
similar action to recover the cost
of higher fuel from their customers.
The India Pakistan Bangladesh Ceylon
Conference, the Europe Middle East
Rate Agreement, the Jeddah Service
Agreement, and the Mediterranean
Arabia Conference are all lifting
their fuel surcharges in March.
Meanwhile, shipping lines lament
that soaring fuel prices and a
sliding US dollar could nullify any
gains from the higher freight rates
that container lines are starting to
obtain.
Bunker prices are at present 25 per
cent above last year's average
US$132 per ton.
Although the shipping lines are
however expected to pass on some of
the cost to customers (in the form
of CAF and BAF) they may not be able
recover all the extra outlay. |
