Box lines feel the squeeze as big four port operators raise terminal charges.

(From Lloyds List)

Byline: Carriers argue consolidation among port owners has led to inflation-beating increases, writes Janet Porter

CONTAINER lines are struggling to pass on to their customers the hefty increases in terminal charges that global port operators are pushing through.

The world's big four port owners are raising their prices by far more than the rate of inflation, major liner shipping companies complained yesterday.

Although the increases are largely a function of supply and demand, consolidation in the ports industry has created a quartet of powerful players that are able to dictate terms.

Concern about the impact of port ownership concentrated in the hands of a few players emerged yesterday as members of the Far Eastern Freight Conference signalled to their customers that ocean rates had to rise to cover soaring outgoings.

Rationalisation in the ports industry is happening at a much faster pace than in the liner sector, where the greater number of participants continues to hinder ocean carriers in their efforts to be reimbursed for higher costs.