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UAE: Cost of shipping doubles in the past 12 months
Consumption; Demand; PricesThe cost of shipping a container from Dubai to key destinations around the world has almost doubled in the past 12 months – sparking fears that rates could reach alarming levels.

Shipping a 20ft container from Jebel Ali to Rotterdam, Europe’s largest port, through Inchcape Shipping Services currently costs Dh3,300 while a 40ft unit costs Dh6,200 before port charges. In the same period last year shipping a 20ft container from Dubai to Rotterdam cost Dh1,780 while a 40ft one cost Dh3,122. Inchcape is the UAE agent for Hamburg-based Hapag-Lloyd, one of the five top container shippers.


Meanwhile, shipping a 20ft container from Jebel Ali to Shanghai in China – one of the world’s busiest ports by cargo tonnage – cost Dh360 in July 2007 but the charge now is Dh576, excluding other charges.

The increase in container shipping rates reflects rising costs in the regional and global industry resulting from increasing fuel prices, port congestion and shortage of skilled manpower.

Container shipping rates have increased almost every month over the past year on lines to Europe, North America, Asia and Africa.

“Fuel prices are certainly continuing to push up rates further and it is the shippers who have to bear the extra costs,” said Mathieu Philipe, General Manager of Barry Rogliano Salles (BRS) shipbrokers in Dubai. “The increasing rates, however, have not dampened demand since shippers offset the extra costs by increasing the prices of their shipments.”

Emirates Business 24/7

Posted on Tuesday, July 22 @ 09:23:40 PDT by Leanan
 
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