Container shipping liners likely to raise freight rates: Vasan

New Delhi: Container shipping freight rates are likely to rise in the coming days due to rise in operating costs, Parliament was informed today.

“Container shipping liners are planning to increase the freight rates which was stagnant for a long time in spite of increase in fuel costs and reduced earning,” Shipping Minister GK Vasan said in a written reply to the Rajya Sabha.

[caption id=“attachment_259915” align=“alignleft” width=“380” caption=“According to experts, freight rates have not been revised by the industry to the extent of increase in marine fuel prices.”]  [/caption]

He said the companies were looking “to cover the operating cost including continuous increase of cost of bunker or fuel costs” as the volumes of the firms have decreased due to slump in business worldwide.

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“The quantum of increase of freight rates would depend upon market conditions,” Vasan said, adding the cost of shipped goods and merchandise could also increase due to the the likely rise in freight rates.

Meanwhile, according to experts, freight rates have not been revised by the industry to the extent of increase in marine fuel prices.

They said the fuel costs have more than doubled in the last two years and has led to reduced profits of the companies in the sector.

PTI