Members of the Informal Rate Agreement (IRA) shipping lines who increased ocean freight charges by $250 per TEU on July 1, covering inbound trade from the Far East to destinations in the Middle East, have agreed to add another $150 per TEU as Peak Season Surcharge (PSS) for dry bulk with effect from August 18, according to an IRA announcement.
This rate increase will be applied on top of the ongoing market rate and will be applicable to all cargo to the Middle East from Far Eastern destinations.
"In order to maintain a high standard of service to our customers during the seasonal cargo rush period, our organisation has agreed to follow the recommendation made by the IRA and adopted by all member lines to implement the PSS," said a spokesperson for Maersk Kanoo (UAE).
"The PSS will be manifested separately from our ocean freight rates for all shipments with origins in the Far East to all ports and points in the Middle East and will apply on top of our existing rates."
The member lines participating in the increase are APL, China Chipping Container Lines, CMA CGM and ANL, Cosco Container Lines, Evergreen, Hyundai Merchant Marine, Islamic Republic of Iran Shipping Lines, Maersk Sealand, MOL, NYK, NOL, OOCL, PIL, P&O Nedloyd, Tokyo Senpaku Kaisha, United Arab Shipping Co., W&W, Wan Hai Lines and YMT lines.
From July 1, all shipments with origin in Dubai to all ports and points in the Far East have been levying an increase of $100 per 20-feet and $200 per 40-feet container in the base ocean freight rate.
A shipping industry source said the decision comes in response to the increased bulk bookings from the Far East.
Captain Tariq Khan, operations manager of Silver Seas Shipping, said: "Ship owners, over the last few months, have been adding surcharges. For them we collect a bunker adjustment factor (Baf) charge of $100, a currency adjustment factor (Caf) of $100, and rate restoration of $250 among IRA member lines from the clients. Now they have introduced PSS worth $150 for the Far East sector.
"In many sectors, these charges are more than the actual freight charge of a container. The PSS has been introduced by the main line shippers to take advantage of the busy container traffic on the Far East-Middle East route."
Gulf News
