Feeder operators to raise freight charges soon
Tuesday, 14 August 2007
Jasim Uddin Haroon
The feeder vessel operators will raise their freight charges from the current month and will also re-introduce bunker (fuel) surcharge if the fuel costs continues to escalate in the international market.
Importers fear that such rise in transportation costs will push up the prices of imported essential commodities especially during the month of Ramadan.
The feeder vessel operators have, however, decided to raise freight charges by additional US$ 50 for each 20 feet container and $100 for each 40 feet container.
Currently, the freight between Singapore and Bangladesh varies between $ 200 and $ 240 for each 20-foot container.
Earlier, the feeder operators realised bunker surcharge at a rate of $ 25 for each 20-foot container and waived it when the fuel costs came down.
Sources at the apparel sector told the FE that it will adversely affect the export as buyers will be reluctant to pay higher freight charges.
The Asian Feeder Discussion Group (AFDG) and Colombo Feeder Operators (CFO) have separately notified their members to implement critical bunker recovery (CBR) from August 15 and August 24 respectively.
It also said the CBR shall be payable with the ocean freights either on prepaid or collect basis.
The vessel operators argued that bunker costs have been increasing for the past few months and recently has hit record highs of over $ 400 per tonne.
The CBR will be reviewed if the monthly average bunker prices to fall below $ 400 each tonne.
But, two feeder operators - HRC Shipping Lines and Bangladesh Shipping Corporation (BSC) - will not raise their freights.
The participating feeder operators are Advance Container Lines, Orient Express Line (OEL), QC Container Line, Sea Consortium Limited, PACC Container Lines Limited and Shamudra Shipping Line Limited.
These are all major feeder operators operating between Bangladesh port and ports of Colombo, Singapore, and Malaysia.
One feeder operator told the FE that they are forced to realise CBR following unprecedented fuel price hike in the international market and increased charter prices.
The charterering price has been rising following high demand and inadequate supply of vessels from the shipyards.
The feeder vessel operators will raise their freight charges from the current month and will also re-introduce bunker (fuel) surcharge if the fuel costs continues to escalate in the international market.
Importers fear that such rise in transportation costs will push up the prices of imported essential commodities especially during the month of Ramadan.
The feeder vessel operators have, however, decided to raise freight charges by additional US$ 50 for each 20 feet container and $100 for each 40 feet container.
Currently, the freight between Singapore and Bangladesh varies between $ 200 and $ 240 for each 20-foot container.
Earlier, the feeder operators realised bunker surcharge at a rate of $ 25 for each 20-foot container and waived it when the fuel costs came down.
Sources at the apparel sector told the FE that it will adversely affect the export as buyers will be reluctant to pay higher freight charges.
The Asian Feeder Discussion Group (AFDG) and Colombo Feeder Operators (CFO) have separately notified their members to implement critical bunker recovery (CBR) from August 15 and August 24 respectively.
It also said the CBR shall be payable with the ocean freights either on prepaid or collect basis.
The vessel operators argued that bunker costs have been increasing for the past few months and recently has hit record highs of over $ 400 per tonne.
The CBR will be reviewed if the monthly average bunker prices to fall below $ 400 each tonne.
But, two feeder operators - HRC Shipping Lines and Bangladesh Shipping Corporation (BSC) - will not raise their freights.
The participating feeder operators are Advance Container Lines, Orient Express Line (OEL), QC Container Line, Sea Consortium Limited, PACC Container Lines Limited and Shamudra Shipping Line Limited.
These are all major feeder operators operating between Bangladesh port and ports of Colombo, Singapore, and Malaysia.
One feeder operator told the FE that they are forced to realise CBR following unprecedented fuel price hike in the international market and increased charter prices.
The charterering price has been rising following high demand and inadequate supply of vessels from the shipyards.