North Europe/Asia, Rate Restoration will Be on 1 October.

The previous EMA market review was issued on 31 January at whic
h time, the Member Lines advised that the growth in volumes for the y
ear 2000 was expected to be in the region of 7%. This is slightly a
bove their estimate of the overall additional capacity being added
by the FEFC Lines during the year - around 5.8%. The Lines can now rep
ort that preliminary figures up to early May already show an increase
in liftings of nearly 10% compared to the equivalent period in 1999 w
ith no significant change in the expected rise in capacity.
In their January announcement, the Lines advised that to reintroduce g
reater stability in the trade, following the rate restoration on 1 A
pril 2000, there would not be another overall rise in rates before
October 2000. The Lines can now confirm that the next stage of the
programme will therefore only come into effect on 1 October 2000
and would advise that this will consist of a rate restorat
ion of USD 250 per container(20/40'). Following this increase, i
t is Line's intention not to introduce any further general restor
ation before April 2001.
As has been the case, where cargoes are still subject to very low
rates, Lines may have to take additional action. If this becomes nece
ssary, they will advise the customers involved.
In their review, the Lines have also considered the position of Refrig
erated cargo where the patterns of trade, particularly for seasonal t
raffic, tend not to coincide with those for standard dry cargo. The Li
nes have accordingly decided that Refrigerated cargo should become s
ubject to a separate restoration programme and they will be in cont
act with their customers in this respect in due course.