Cosco announces wide range of rate hikes and surcharges on main trades

COSCO Container Lines has announced a wide range of rate increases and surcharges on its main container trades.

A general rate increase (GRI) will be applied to all westbound Asia-Europe cargo including reefers from Far East including Japan to the Indian subcontinent to north west Europe and the Mediterranean including Israel, Lebanon, Syria, North Africa and Black Sea ports.


The GRI will be US$300 per TEU from March 1 and another $300 per TEU from April 1.


There will also be a first half 2012 rate restoration plan imposed between Asia Pacific and African ports on all cargo including reefer boxes. For the Gulf trade, cargo will face a $150 per TEU increase from March 1 and $150 per TEU from April 15, and $250 per TEU on May 15 as well as another $150 per TEU charge on June 15.


To the Red Sea, charges will be $150 per TEU from March 1, another $150 on April 15 to be followed by a $250 per TEU charge on May 15 and another $150 per TEU on June 15.


To the Indian subcontinent, there will be a $100 per TEU increase from March 1, then $150 per TEU added on April 15 and another $150 per TEU added to that on June 1.


To the east coast of South America, there will be a $300 per TEU charge added on April 1 and a $400 per TEU charge on top of that from June 1.


To the west coast of South America, there will be a $300 increase added on April 1 and to Australia, another $250 per TEU rate hike in May.


Cosco also gave notice of an emergency fuel surcharge (EFS) for the Asia Pacific and African trade on all shipments including reefer cargo for the Far East to Asia Pacific Africa trade and effective February 15.


The EFS is a $60 per TEU charge to the Gulf, $80 per TEU to the Red Sea, $60 to the Indian subcontinent, $100 per TEU to the east and west coasts of South America and $80 per TEU to South Africa, $50 per TEU to Australian and $60 per TEU to New Zealand.


The BAF charges for shipments between Far East and northwest Europe will beUS$857 per TEU and $1,714 per FEU.


Shipments between Far East and Mediterranean, including Israel, Lebanon, Syria, the Black Sea and West and North Africa, will face a charge of $804 per TEU and $1,608 per FEU.


Shipments between Indian subcontinent and northwest Europe, the Mediterranean, including Israel, Lebanon, Syria, the Black Sea, West and North Africa will face a charge of $515 per TEU and $1,030 per FEU.


A new Bunker Adjustment Factor (BAF) charge was also announced for both east and west bound shipments to and from the Far East including Japan, and to the Indian subcontinent to Europe and the Mediterranean effective from March 1.


A Currency Adjustment Factor (CAF) charge will be set at 10.19 per cent of ocean freight and apply to both east and west bound shipments in the Far East, including Japan, and to the Indian subcontinent to north west Europe and the Mediterranean trade, effective March 1.


In this case, the Mediterranean means Lebanon, Syria, the Black Sea, West and North Africa region, but not Israel.


Cosco will also impose a different BAF for both north and southbound shipments for northwest Europe and the Mediterranean to South America`s east coast from March 1.


This BAF, applied to cargo bound for north west Europe, the Med and South America`s east coast involves a levy of EUR524 per TEU (US$690) and EUR1,048 per FEU. Shipments from South America`s east coast to north west Europe and the Med will be levied a $295 per TEU charge.


Cosco also announced an Emergency Bunker Surcharge (EBS) adjustment for both east and west bound shipments in Far East to north west Europe and the Mediterranean from March 1, which will be applied as follows: $227 per TEU between the Far East and north west Europe and $207 per TEU between the Far East and the Mediterranean.