OCEAN & AIRFREIGHT UPDATE – OCTOBER (week 1) 2010

OCEAN & AIRFREIGHT UPDATE – OCTOBER (week 1) 2010

Please note that none of the information contained here is speculative. All information is collated from that generally available via the internet.

Far East & Indian sub-continent westbound (import) rates/space/equipment update

The peak season has so far been relatively quiet such that all peak season surcharges have been postponed. It is possible that a PSS will be applied from January 1^st 2011 until the Chinese New Year. In fact ocean freight rates have fallen slightly and hopefully this should be reflected in charges from 1^st October 2010.

Over the year 2010 carriers have returned to significant profitability although they have indicated that will continue to control rates by implementing vessel withdrawal programmes, if necessary. This is already apparent with the slow steaming of some vessels that is increasing transit times by up to 5 days.

Far East & Indian sub-continent eastbound rates/space/equipment update (exports)

Exports rates remain at present levels.

UK Terminal Handling charges – generally remain at £120 except Maersk and SafMarine where THC remains @ £126 per container.

Heavyweight Container Surcharges – continue for westbound traffic only with each carrier having slightly different weight break points. It should be noted that this surcharge is not part of any ‘all-inclusive’ rate.

North China 20ft Equipment Premium – This charge continues to be applied by all lines on containers ex Dalian, Qingdao, Tianjin, Xingang, Yantai and Lianyungang at $250 per 20ft container only.

Suez Canal Surcharge – remains at $25 per TEU except Evergreen ($47 per TEU).

Gulf of Aden Emergency Risk Surcharge – generally $45 per TEU except MSC ($55 per TEU).

20ft Equipment Imbalance Surcharge – MSC has suspended this surcharge from 1^st August 2010.

UK Fuel Surcharge – has reached 18.5% on most published indices and continues into October 2010 – though the amount actually charged varies dependent upon each carrier’s fuel buying pattern and start point.

Airfreight – fuel/security surcharges are expected to continue at the present relatively low levels well into 2011:

Hong Kong + 6.00HK$ (combined) per kg.

Shanghai   + 9.20CNY (combined) per kg.

Kevin Fryer       1^st October 2010.

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