Low value cargo rates must rise, say operators.

(From Lloyds List)

Byline: Warning of frequent rate rises to make eastbound trade viable, writes Janet Porter

CONFERENCE lines operating services between Europe and Asia are not prepared to carry low value cargo at current freight rates.

That is the warning to shippers, and it is no idle threat.

With the market so strong in the westbound direction as cargo volumes out of the Far East continue to grow, the eastbound trades contribute very little, if anything, to the bottom line.

Some lines have stopped accepting certain commodities such as waste paper entirely, while others will only take eastbound cargo if it is convenient and does not mean delivering containers to out-of-the-way destinations.

Freight rates have been driven down in part by the arrival of so much new tonnage, with some non-conference lines said to have offered cut price transport back to Asia in order to improve eastbound utilisation levels,