Wednesday, Jul 19, 2006
By Shakir Husain, Staff Reporter
Dubai: Hong Kong-based Orient Overseas Container Line (OOCL) will launch a new service between East Asia and the Gulf amid rising cargo volumes between the two regions.
The Middle East Asia Express (MAX) service will begin on July 27 with the inaugural voyage of the OOCL Dubai ship from Jebel Ali Port.
The company has services between Asia and Europe that serve the Gulf, but MAX will be an exclusive service between Dubai and Shanghai.
The vessel has a capacity of 5,888 TEU (20-foot equivalent container units). Japan's TSK is expected to share some of the capacity.
"OOCL has recognised the Middle East as a region of long-term economic growth. We are committed to support this continued growth," the company said.
The OOCL Dubai will be the first vessel deployed on the company's latest service linking China with Malaysia, Southeast Asia and the Middle East.
MAX will be the largest-capacity provider in the Asia-Middle East Trade, and will cover the ports of Shanghai, Ningbo, Hong Kong, Shekou, Singapore, Port Klang and Jebel Ali during its 35-day round trip.
French shipping line CMA-CGM has also started a new service offering 2,700-TEU capacity on the East Asia-Gulf route.
China-India-Middle East Express (CIMEX) is a new weekly service between East Asia, India and the Gulf.
Rates increase
Due to high cargo volumes from East Asia to the Middle East, shipping lines have to increase freight rates.
According to shipping industry sources, the average rates have increased between $50 and $100 per TEU (20 foot equivalent). In some cases, rates have gone up by $200 per TEU.
"Some times we cannot accept cargo in Asia because of lack of space on the vessel," said a shipping line source.
High bunker fuel costs have also increased transportation cost, but bunker adjustment factor (Baf) surcharge is expected to drop from $169 to $160 next month, the source said.
"This will the first decline in Baf in a year," he added.
Gulf News 2006. All rights reserved.
