Minimum rates introduced in Vietnam, Malaysia inbound

In the midst of varying opinions on how effective the minimum rates system has been in Korean / Indonesian and Thai trade routes since last June, the second minimum rates system is ready for launch in Southeast Asian trades.

The Committee of Shipowner's for Asian Liner Services revealed that it would invite the minimum rates system for inbound trades from Malaysia and Vietnam coming this November 1st.

Based on this announcement, the rates for dry cargoes from Ho Chi Minh City will be set at 320 dollars per 20-foot equivalent unit (TEU) and 600 dollars for 40-foot equivalent unit (FEU). Refrigerated containers will be charged 1,200 dollars per TEU and 1,900 dollars per FEU.

Dry cargoes from Ho Chi Minh City to Inchon will be 350 dollars per TEU and 650 dollars per FEU. Refrigerated cargoes in the trade will be 1,200 dollars per TEU and 2,000 dollars per FEU.

Cargoes from the Port of Kelang to Pusan will be 150 dollars per TEU and 300 dollars per FEU. Port of Kelang to Inchon cargoes will be 200 dollars per TEU and 350 dollars per FEU.

Penang to Pusan will be 200 and 350 dollars per TEU and FEU, respectively. Penang to Inchon will be 250 and 400 dollars per TEU and FEU.

"The minimum rates introduction, initiated by a group of 6 Korean shipping companies, is keeping well. Some foreign shipping companies showed their interests in this system, as they are keen to prevent the rates from going downward. So, we introduced this system to stabilize the whole of Southeast Asian trade. Very soon we are going to introduce this system in other outbound trades too," said an official at the Committee of Shipowner's for Asian Liner Services. On the other hand, a shipping company worker cynically noted that the system was just in name, without any real benefit.

In Southeast Asian trades, Korean shipping companies accounted for 70% of all cargoes, 80% at the upper limit.

The Yellow Sea Liner's Committee, also, tried to introduce a minimum rates system in China trades last May. However, it amounted to nothing due to insufficient preparation. The committee is now preparing for another go at the system as soon as possible.