High Seas

Former MP Duminda Silva opens trading in Adam Investments (AINV) at the CSE, Photo Credit Hiru News

Cost of trade with the west could rise further with shipping cartels plying the Asia-Europe routs tipped to mark up freight rates from December 2006. Cost of trade with the west could rise further with shipping cartels plying the Asia-Europe routs tipped to mark up freight rates from December 2006. The Karmahom Conference, a cartel of shipping lines controlling the South Asia over the weekend announced that rates to the UK and some of the west European ports will increase by $150 a TEU (Twenty Foot Equivalent Units).

Starting December 1, the conference will implement a rate restoration in the Westbound to UK, North Continent, Scandinavian, Baltic and Mediterranean Ports.

For a forty-foot equivalent unit (FEU) the increase is $300. The increased rate levels will be valid until January 31, 2006, says a notice issued by the Karmahom Conference, which describes the increase as “Westbound Rate Restoration.”

Freight rates to the UK hover between $900 and $1,050 a TEU and to other west European ports it would be slightly higher, said an industry source.

Local exporters say though the cartel may not succeed in fully implementing the incre