SCI plans freight rate hike on west-bound trade.
The Shipping Corporation of India (SCI) proposes to hike freight rate on the west-bound trade from India to Europe as part its rate restoration initiative, according to shipping industry sources. Effective March 1, the proposed increase will be $250 a TEU and will apply to all cargoes moving from India to North Europe, the UK, the Mediterranean and the Black Sea ports, it is learnt. Only recently on February 4, did the public sector shipping line announce a similar freight rate increase on the same route.
Separately, SCI, it is further learnt, will also increase its ?line security surcharge? imposed earlier on all cargoes moving to and from India, on the ground of increased security-related costs at various ports. Effective March 1, the line security surcharge will be $10/ TEU against $7 at present.
Meanwhile, CMA CGM, France's number one shipping line, has announced that it will raise freight rates on the west bound trade, i.e. from Asian ports including Japan and South East Asia and the Indian sub-continent to ports in North Europe, the Mediterranean and the Black Sea with effect from March 15. The extent of increase will be $200/TEU and will apply to all cargoes and commodities.
United Arab Shipping too has announced freight increase from Asia to East Mediterranean destinations starting March 1 and the increase will be $250/TEU for both dry and reefer cargoes, add the sources.