British Allied Trade Federation

Import freight rates for shipments from Chinese and other Asian ports to Europe are set to soar, from March 2012, as shipping lines implement a general rate increase and reduce capacity.
 
Vessel operators have notified clients of an intended general rate increase (GRI) of US$ 600.00 per 20ft container, to take place from 1st March – a move which would almost double rates from current levels.  This move is being backed by a programme of withdrawing vessels from scheduled operations, in order to remove from the market the excess shipping space capacity which has led to deterioration in freight levels in the last 18 months.

Previous attempts to increase freight rates in the past 12months have met with little success; however lines appear determined to enforce an increase in prices, since many of them have reported large losses in recent years.

Based on previous experience, it is unlikely that the increase will be implemented in full, however it seems very likely that rates will rise, at a time when the gift, jewellery, and home industry faces increasing pressure on margins and price levels. Any increase in rates for full containers would also have a “knock-on” effect on prices for less than container load (LCL) shipments by sea.

British Jewellery & Giftware International works with the Woodlands Freight group and recommends them as its preferred partner for import shipping services from Asia. If you are worried about rising freight rates, contact any member of the BJGI team to find out how Woodlands Freight group can help you.