• Sun
  • Dec 21, 2014
  • Updated: 11:26am

Moves on Mid-East TEU rate

PUBLISHED : Friday, 17 September, 1993, 12:00am
UPDATED : Friday, 17 September, 1993, 12:00am
 

THE Informal Rate Agreement (IRA) is to implement a US$150 rate restoration per TEU (20 ft equivalent unit) for Middle East bound cargo from Asia, excluding Japan from October 15.


It also will impose a $300 rate per FEU (40 ft equivalent unit) on the same route.


The agreement, which covers containers services on the Japan-Asia and Middle East Gulf route, comprises 11 conference lines.


The lines had introduced a ''volume ceiling'' system in May to check the slide in freight rates.


According to a statement from one carrier, rates in this trade had deteriorated to the point that shipping lines involved had suffered considerable operating losses.


In a move aimed at ensuring continued quality services, the lines had no choice but to restore the rates, it said.


The IRA, at its recent meeting in Singapore, concluded that the volume ceiling system had failed to achieve the desired result.


The IRA intends to persuade non-member carriers to the agreement to either join the grouping or to support the rate restoration by implementing it.


It also has decided to extend the volume ceiling system, scheduled to end in October, until the end of January.


The IRA, at its October 4 meeting in Hong Kong, will decide the loading shares of the carriers in November.


Shipping lines involved in the the action are APL, K-Line, Maersk, MOL, NYK, OOCL, P&OCL, Sea-Land, Uniglory, UASC and Wilhelmsen.


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