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Shipping rates for exports from
Asia to Europe is set to move up again as the
cartel of 16 shipping lines under the Far
Eastern Freight Conference (FEFC) confirmed that
they will be increasing rates to and from Asia
as of 1st July, 2007.
The rate increase follows strong growth in
exports from Asia to Europe.
The Far Eastern Freight Conference, whose member
lines control more than two-thirds of the
available Asia/Europe vessel capacity, has
reported impressive volume growth in both
directions of the trade during the first
quarter.
In the dominant westbound leg, volumes rose 20.7
per cent to 2.12 million TEUs, with the Far East
to North Europe up 19 percent to 1.4 million
TEUs and Asia to Mediterranean rising 24.2 per
cent to 724,890 TEUs.
In the Eastbound trade from Europe to Asia, the
FEFC reported a 9.6 per cent overall rise to
815,173 TEUs.
On a regional basis, volume from North Europe to
Asia improved 7 per cent to 661,569 TEUs with
Mediterranean to Asia cargoes increasing 22.2
per cent to 153,604 TEUs.
Meanwhile, the increases posted may be among the
last the conference lines are expected to enjoy
before the Conference gets the axe following the
European Commission's decision to end the
exemption from competition rules for conference
lines.
The proposal to repeal the competition exemption
for the conferences was the result of a
three-year in-depth investigation by the EC
following extensive consultations with carriers,
shippers and freight forwarders.
Carriers recognise now that price fixing is no
longer necessary in today's market conditions.
After dismantling the conference structure,
shipping lines are expected to form trade
associations which will have nothing to do with
rates with each individual member line will have
a right to fix their own rates and prices will
be driven by supply and demand.
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