29 November 2004

Montreal/Europe carriers seek multiple rate rises

The following article is excerpted from the 26 November 2004 edition of “American Shipper”.

Liner conference carriers in the westbound and eastbound trades between Canada and northern Europe plan to raise freight rates substantially next year, under a three-step schedule, saying that the cost of running their operations is increasing.

The Canadian North Atlantic Westbound Freight Conference and Continental Canadian Westbound Freight Conference are planning rate hikes scheduled for April 1, July 1 and Oct. 1.

The Canada United Kingdom Freight Conference and Canadian Continental Eastbound freight Conference, which cover the eastbound trade, said that rates will go up on March 1, July 1 and Oct. 1.

Westbound, the conference lines plan to raise rate by $200 per dry container or $300 per reefer container, effective April 1. They have not announced the amounts of the increases planned for July and October.

"Member lines have been absorbing double-digit increases in their costs on items such as equipment, terminal handling, currency, fuel and port/pilotage," the westbound conferences said in a joint statement. "Indications are that these cost increases will continue in 2005."

Eastbound, the planned March 1 increases amount to $160 per dry 20-foot container, $200 per dry 40-foot box, $400 per reefer container from Montreal and $600 per reefer box from Toronto. The eastbound conferences have not announced by how much rates would go up in July and October.

The carriers of the Canada-Europe conferences are: Canada Maritime and sister company Cast, Hapag-Lloyd and Orient Overseas Container Line…..