COSCO on Friday announced sharp rate increases for all cargo from the Far East to Red Sea and Persian Gulf trade over 11 weeks, with a total of $1,000 added to existing rates on two lanes.
For all cargo from the Far East to the Red Sea, rates will increase $200 per TEU on March 15, followed by additional $200-per-TEU increases on April 1, April 15, May 15 and June 1.
From the Far East to the Gulf, cargo rates will increase $200 per TEU on April 1 and again on April 15; and $300 per TEU on May 15 and June 1.
COSCO on Monday reported a 71-percent drop in full-year 2013 net profit, due to lower profit contributions from ship-building and marine engineering segments, Reuters
The company’s full-year net profit was $24.14 million.
Reportedly, COSCO has recently agreed to an alliance with China Shipping. According to the Wall Street Journal
, the companies signed a pact earlier this month, saying they hope to "improve the influence of Chinese shipping companies in the world shipping industry."
For the rate increases, COSCO noted that the Far East includes China Mainland, Hong Kong, Taiwan, Macao, the Philippines, Vietnam, Thailand, Malaysia, Singapore, Indonesia, Korea, Brunei, Cambodia, Myanmar and Bangladesh.
The Persian Gulf includes Iraq, Kuwait, Saudi Arabia (Persian Gulf Coastal), Bahrain, Qatar, United Arab Emirates and Oman.
The Red Sea includes Saudi Arabia (Red Sea Coastal), Yemen, Jordan, Egypt and Sudan.