Rate increases for shipping companies operating between Indian and European ports are set to rise on 1 April after shipping groups decided that current rates are not covering operating costs, the Business Standard has reported.
A senior official from a German shipping company told the publication that rates had fallen to uncommercial levels leading to a reduction in services, and that implementing a general rate increase of US$300-US$500 per TEU (twenty foot equivalent unit) would aid groups looking to avoid the lay-up of vessels.
A number of services have been overhauled since the industry reported widespread record profits in mid-2008, with containerships laid up in record numbers and groups adding extra port calls to increase capacity.
The London-based India Pakistan Bangladesh Ceylon Conference, representing 19 groups including Hamburg Süd, Hapag-Lloyd, Maersk Line and CMA CGM, confirmed that the new rate would come into force on 1 April.
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