Mumbai-Uk Sector Freight Rates Tumble

Freight rates between Jawaharlal Nehru Port (JNP) and UK\N.Continent sector have crashed by 20 to 25 per cent in the last three months.

Freight rates from Mumbai too have fallen by 20 per cent.

The rates, which were ruling at about $1000 per twenty feet equivalent unit (TEU), have now declined to between $750 and $ 800 per Teu at JNP.

Industry sources say this is primarily due to over-tonnage in this sector. "In the last 18 months a number of new lines have come in. This has put pressure on freight rates," said an industry source.

Some of the leading players in this sector are the Contship-CMB-P&O, Shipping Corporation of India-Zim-Ceylon Shipping Company, CMA-DSR-Cho Yang -Ellerman and the Sea Land-Maersk consortia. Zim is a recent entrant in this sector.

 

The other big names include Hyundai Merchant Marine,Hanjin Shipping, Evergreen and NOL. Hyundai and Hanjin carry cargo from the hub port of Colombo.

A large number of non-vessel owning common carriers (NVOCCs) including NPIL and Sai Freight also operate on this sector. Sources say the presence of the NVOCCs has contributed substantially to the fall in freight rates as they too book cargo on the vessels of these operators.

Karmahom Conference, the cartel of shipping lines which controls the trade on this sector, has not fixed any reference rate in the last three months.