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BD freight rates rise over Iraq war

CHITTAGONG: Freight rates for Bangladeshi cargoes bound for ports in Europe have risen more than 14 percent since the start of a US-led war against Iraq, shippers said on Monday.

"We have been advised by our principals to charge the new rates from tomorrow (April 1)," Syed Iqbal Ali, general manager of Orient Express Line Private Ltd, told Reuters.

The charge for each TEU (twenty-foot equivalent unit) bound for a European port was $1,255, against $1,100 prior to the war, shippers said.

Two-way annual trade to European ports is 174,000 TEUs.

The increase followed news last week that freight rates for ports in the Gulf had risen 25 percent to $1,250 per TEU bound for the Middle East, against $1,000 previously.

Shippers also charge an additional $100 for each container bound for Kuwaiti ports.

The increases had been endorsed by two leading umbrella organisations of ship owners and operators: Hong Kong-based India Pakistan Bangladesh Cylone Conference Line (IPBCCL) and Singapore-based Trans Pacific Rates Establishment Agreement (TPREA), shippers said.

TPREA enforced its new rates on March 20, immediately after the start of the war.

"We were forced to enhance the rates immediately after the start of the war, because most our ships operate in the Middle East, including the Gulf region," said Zahirul Hannan, operation manager in Bangladesh for American President Line, a member of TPREA.

Ships carry 116,000 import TEUs to Bangladesh from European and Middle Eastern ports annually, against about 84,000 export TEUs from Bangladesh.

Bangladesh imports petroleum products, crude oil, foods, chemicals, machinery and cement and exports jute goods, shrimp and tea.-Reuters