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(From Lloyds List)
Byline: Large North Atlantic hikes to be implemented in three stages next year, writes Leo Ryan in Montreal
CANADA'S shippers and freight forwarders have reacted with dismay over the large freight rate increases announced last Friday by the Canadian North Atlantic conferences.
The rate hikes are to be implemented in three stages in 2005 on eastbound and westbound container shipments and follow similar moves by conference carriers on the US-Europe trade lane.
'While shippers can understand normal supply-demand considerations, what appear to be substantial rate increases do not have much information back-up to justify them,' said Robert Ballantyne, president of the Canadian Industrial Transportation Association.
'Higher transportation costs are a competitiveness issue for Canadian companies.'
The industry association's 130 members account for an annual freight bill of C$6bn (US$7.08bn).