OCEAN & AIRFREIGHT UPDATE – September 2011

Far East & Indian sub-cont westbound (import) rates/space/equipment – Spot rates have risen during this first few days of September. This is the first rise this year. It is evident that demand has built up and vessel utilisation is in the high 90% levels. APL introduced a a very modest PSS (Peak Season Surcharge) of $75 in mid-August and although most carriers’ rates have remained unchanged from August there are some slight increases. Lines continue to announce heavy losses and have a clear objective to increase freight rates to more sustainable levels.

A provisional notice has been issued on a 14-day notice period of the plan to introduce a PSS of $200 to $300 per TEU in expectation of further increases in volumes ahead China closing down for the ‘Golden Week’ (1^st to 7^th October).

Far East & Indian sub-cont eastbound rates/space/equipment (exports) – Ocean freight rates remain at an all-time low and equipment re-positioning remains and issue.

UK Terminal Handling charges – generally remain at £120 except Maersk and SafMarine where THC is £131 per container. Hanjin and MSC have increased THC to £125 and K-Line to £122 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 (westbound only) – This charge continues to be applied by all lines on 20ft 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) and CSAV ($50 per TEU).

Gulf of Aden Emergency Risk Surcharge – this surcharge is now $55 per TEU.

UK Landside Charges/Haulage/Fuel/Port Congestion – Fuel Surcharge remains at 25.5% (against a base price of £0.90 ppl) on most published indices reflecting the contuing high price of diesel.

Airfreight – fuel/security surcharges are expected to continue. Current rates:

Hong Kong     HK$9.20 (combined) per kg reduces to HK$8.40 on 15/9/11.

Shanghai remains at CNY9.20 (combined) per kg.

Kevin Fryer 9^th September 2011.

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