Increase in freight rates

Freight rates from Asia to Europe will be raised by at least $350 per teu on August 1.

According to the Asia Westbound Rate Agreement, a regional unit of the Far Eastern Freight Conference, which had originally planned to lift rates by $250 this summer, decided on a larger increase because of the strength of trade


New Booklet on spill liability

The International Tanker Owners Pollution Federation and the International Petroleum Industry Environmental Conservation Association has produced a new booklet outlining the main features of the 1992 Civil Liability and Fund Conventions.

The publication is divided into three sections, the first of which explains who contributes, the two layers of compensation, compensation limits and what constitutes an admissible claim.

Claims presentation, record keeping and a few useful addresses are also included.

The second section of the book consists of a Powerpoint presentation on oil spill compensation which can also be downloaded from the ITOPF or IPIECA websites.

The final portion of the booklet is devoted to answering some commonly asked questions relating to compensation mechanisms.

What are the benefits of joining the 1992 conventions? What happens if the tanker owner cannot pay? Who decides what is a 'reasonable ' claim? 

Shipowners may get a copy of the book free of charge from ITOPF. Multiple copies will be charged at a rate of £6 ($9) each.


Lines adjust bunker prices

With no respite in the upward movement of bunker prices, shipping lines have sought to raise their bunker adjustment factors. 

Member lines of the Asia Westbound Rate Agreement (Awra) and Eastbound Management Agreement (EMA) raised the Bunker Adjustment Factor (BAF) as did also lines belonging to the Mediterranean Far East Conference (Medfec). 
From May 1, the Informal Rate Agreement (IRA) Far East/Middle East and the Transpacific Stabilisation Agreement increased the emergency bunker surcharge and fuel adjustment surcharge in tariff rates and new service contracts. 
The latest rise affects the Mediterranean-Far East, North Europe and Asia to Gulf of Aden and Red Sea ports trades. 
Awra and EMA in an announcement said the existing BAF of US$45 (RM171) a TEU will be increased to US$61 (RM231.80) a TEU while for less container load (LCL) cargo, the BAF charge applicable will now be US$3.05 (RM11.59) a revenue tonne. 
Medfec said its members were compelled to adjust the amount of BAF from US$40 (RM152) a twenty-footer and US$90 (RM342) a forty-footer to US$61 (RM231.80) a box and US$122 (RM463.60) per FEU respectively. 


Northport gears up

The prospects of Klang Container Terminal (KCT) and Klang Port Management (KPM) - the two port operators at Northport in Port Klang - to play an expanded role in the national economy has been further enhanced with the recent corporate exercise leading to consolidation of their operations. The restructuring exercise involved the shareholders of the three companies Klang Container Terminal Bhd., Kontena Nasional Bhd. and Klang Port Management Sdn. Bhd. setting up of a new holding company, Northport Corporation Berhad (NCB).

Under the exercise NCB will hold 100% equity in KCT and KN while KCT will hold 99% in KPM - the remainder being a special share held by the Ministry of Finance Inc. All the present shareholders of KN, KCT and KPM will become shareholders in NCB. According to KCT, Managing Director Abdul Samad Mohamed, from the stand point of the port users, the change means that the two companies that are providing container handling services in Northport are now closer linked together through a common ultimate holding company.

"This should pave the way for greater level of operational collaboration such that the full array of the pooled resources can be optimised with greater flexibility for the purpose of ensuring efficient and effective customer services," he said.

"Certain initiatives can be undertaken as joint, efforts, thereby increasing effectiveness and offering benefits of economies of scale and in the ultimate analysis, what the two companies can more effectively do together can only translate into enhanced capability for delivering service for customers," Samad said.

One priority area both companies are now working on is the re-development of berth 12 and 13 in order to create additional container handling capacity. Currently Northport with a total quay length of over 5 km has 2.3km berth area dedicated for container operations with a combined handling capacity for over 2.6 million TEUs per year.

The Managing Director of KPM, Abdul Halim Harun said the restructuring exercise will enhance the ability of both companies to play their roles well both in respect of the current situation as well as in terms of the long-term future.

"The merger arrangement offers value to the two companies in terms of pursuing their business as much as in enabling them to fulfill their responsibilities as licensed port operators," he said