The Asian Feeder Discussion Group, the association of feeder vessel operators based in Singapore, has proposed to increase freight and bunker rates with effect from May 1.

In a notice sent to the trade, the Group informed that a decision in this regard has been taken in view of the continuing increase in the operating cost. The freight rates have been increased by $40/ TEU from Colombo to Chennai, Tuticorin, Kochi and vice-versa.

On Critical Bunker Recovery (CBR) and ancillary charges, the Group said that it is no longer tenable for them to continue to absorb the bunker cost increases with the recent steep increase in bunker prices over the last two months. Given the situation, there will be an increase of $40/ TEU in bunker prices in the Colombo - Kochi and Colombo – Chennai sector and $30/ TEU in Colombo – Tuticorin sector.

The CBR will be applicable for all inbound and outbound SOC (ship owned containers) shipments (empty and laden) loaded at the ports served by feeder operators. The Group has informed all the Mainline Operators and NVOCC (non vessel operating container carriers) in this regard. At present, the revised rates will be enforced in Colombo-Tuticorin, Colombo – Chennai and Colombo – Kochi sector and other sectors will be followed soon.

With the rate increase coming into force from May 1, the trade has to pay a general rate of $ 210/ TEU in the Kochi – Colombo sector on freight and bunker surcharge from the present rate of $130/ TEU.

Mr C.S. Kartha, General Manager, Bengal Tiger Line, said that the terminal handling charges is not at all connected with feeder operators and it is actually the rates collected by container operators (MLO's and NVOCC).

The feeder operators cannot be penalised for this, he said adding, that the vessel related charges comprising port dues, pilotage and berth hire in Kochi at present is $10,000, while in Tuticorin, Mangalore and Colombo, it was $3,500, $3,500 and $2,500, respectively.

Related Topics
comment COMMENT NOW