AADA says higher oil prices prompt rate hikes

CONTAINER shipping lines participating in the Asia Australia Discussion Agreement (AADA) have announced two upcoming rate hikes.

The AADA said in a statement that members will be increasing the bunker surcharge for shipments originating in mainland China and Hong Kong destined for ports and points in Australia, owing to higher oil prices in Hong Kong and South Korea.

As a result, the bunker surcharge level for shipments from China and Hong Kong to ports in Australia will be adjusted to US$500 per TEU and $1,000 per FEU for dry and refrigerated containers with effect from June 13.

This will be followed by another rate hike for AADA customers in China, Hong Kong and Taiwan from July 1. From this date, all outward shipments with origin in China, Hong Kong and Taiwan bound for Australia will subject to a levy increase of $350/TEU and $700/FEU for both dry and refrigerated cargo in the base ocean freight.

This increase will apply in full on top of existing ongoing market rates and will be subject to accessorial surcharges applicable at the time of shipment, a statement said.

AADA members are: ANL Singapore, China Shipping Container Line (HK), Cosco Container Line, Hamburg Sud, Hanjin Shipping, HMM, "K" Line, Maersk Line, MSC, MOL, NYK Line, OOCL and Gold Star Line (HK).