Coastal lines see rates restoration

Three coastal lines, Korea-Japan trade, Korea-China trade and Southeast Asia trade, are raising rates.
Shipping companies in the Southeast Asia trade decided to raise rates by US $100 per TEU and $200 per FEU.
Concluding that soaring charterage, high bunkerage, and the strong won couldn’t balance the budget, coastal shipping companies agreed to recover bottom rates and escape from excessive cargo collections. The charterage index, HR index, doubled to 1,108 this year from 577 last year.
The shipping lines will reduce preferential treatment for large shippers and try to co-operate on services among shipping companies, expecting vessel space to be reduced and service quality to be equal.
In the meantime, Korea-China container shipping lines voluntarily reduced capacity, disclosing that they would apply new minimum rates from Nov. 1st.
As such, cargoes from Chinese ports such as Shanghai, Xingang, Dalian, and Qingdao, sailing to domestic ports, Pusan, Gwangyang, Masan, and Ulsan, will hike rates to US $200 per TEU and US $400 per FEU. Cargoes from Pusan to Shanghai, Xingang, Dalian, Qingdao cost US $180 per TEU and US $360 per FEU. The cargoes from domestic ports such as Gwangyang, Masan, Ulsan to Shanghai, Xingang, Dalian, Qingdao will be US $210 and US $420 per FEU. Terminal handling charges and documentation fees, BAF and other surcharges will be paid separately.