• BIST 108.953
  • Altın 144,354
  • Dolar 3,4810
  • Euro 4,1079
  • İstanbul 18 °C
  • Ankara 15 °C

Doubt on rate increase plans

Doubt on rate increase plans
Neptune Orient Lines has cast doubt on planned rate increases on the transpacific trade saying there is ?no assurance? they can be successfully implemented.

Neptune Orient Lines has cast doubt on planned rate increases on the transpacific trade saying there is ?no assurance? they can be successfully implemented.

Neptune Orient Lines has cast doubt on planned rate increases on the transpacific trade saying there is ?no assurance? they can be successfully implemented.

In what would appear to be an attempt to distance itself from the Transpacific Stabilization Agreement"s announcement NOL said in a clarification to the Singapore Exchange stressing that media reports on the agreement"s planned rate increases stemmed solely from TSA"s statement.

?Neither NOL nor its subsidiary, APL has issued any media or press statement on the subject,? the Singapore company said.

NOL chief executive Ron Widdows is also chairman of TSA, but comments from him were notably absent from the statement on rate increases.

In an unprecendented move TSA said on Wednseday members had adopted a voluntary across-the-board increase of $500 per feu effective from August 10.

The unilateral increase comes within two months of lines and shippers agreeing new 12-month contracts for cargo shipped between Asia and the US.

?The TSA regularly issues guidelines on freight rates and other issues. However, individual carriers have a "mandatory right of independent action" whether or not to adhere to these guidelines,? NOL said.

NOL also cast doubt on the ability of its liner arm APL to implement the planned rate increases.

?There is no assurance that APL can successfully implement the quantum of freight rate increase as outlined in the TSA guideline,? the company said.

APL has around 1,100 contracts on the transpacific trade with around 55% agreed from the beginning of May and a further 45% renewed at the end of June.

The line moves 95% of its transpacific business under long-term contracts.

In early June APL executive vice-president Bob Sappio warned that unsustainable rates in the trade that did not even cover variable cost were of great concern to the line.

NOL is careful to ensure full disclosure with SGX having had a number of high profile run-ins with the exchange in the past. In the latest incident in March this year SGX publicly reprimanded the shipping company for failing to make a timely announcement regarding rumours of a rights issue.

www.TurkishMaritime.com.tr

This news is a total 2457 time has been read
  • Comments 0
    UYARI: Küfür, hakaret, rencide edici cümleler veya imalar, inançlara saldırı içeren, imla kuralları ile yazılmamış,
    Türkçe karakter kullanılmayan ve büyük harflerle yazılmış yorumlar onaylanmamaktadır.
    Bu habere henüz yorum eklenmemiştir.
Other News
All Rights Reserved © 2006 TURKISH MARITIME | İzinsiz ve kaynak gösterilmeden yayınlanamaz.
Phone : 0090 212 293 75 48 | Fax : 0090 212 293 75 49 |