Effective September 1, state-run Shipping Corporation of India (SCI) raised container freight rates
on different trade routes including the Europe, Mediterranean, Black Sea and Red Sea.
SCI hiked rates considering rise in the fuel costs, insurance premiums and port handling charges. It may be noted that the company, which is suffering operational losses, would have raised rates even without the rise in above costs.
The company raised freight rates by up to 80 per cent on these routes. As a result, the cost of transporting a standard 20 feet container would rise by $300 to $750, reports indicate. Similarly, the firm raised rates for a 40-feet container by $600 to $1,350.
In the last one year, the rates declined to $450 per TEU from $1,400.
The company hopes to maintain the revised rates despite stiff competition in the sector. In the past, every time the firm tries to raise rates, competition forces it to reduce the rates.
Shipping industry is in the throes of slack period globally because of lacklustre trade volumes amid slowdown in economic growth.