Shipping surcharges to increase

By Tan Hwee Ann
Bloomberg News Service

SINGAPORE — Nippon Yusen Kaisha K.K. and other Asian shipping companies will raise fuel surcharges for transporting cargo from Asia to the United States from July 1 because of higher marine fuel oil prices.

The 14 shipping companies which belong to the Transpacific Stabilization Agreement, said they will charge $105 per twenty-foot equivalent unit and $140 per forty-foot container unit, the group said in a statement. It didn't provide details on the previous surcharge.

"Marine fuel prices have risen sharply during the past quarter at key load center ports in the Pacific region, adding to operating costs," the shipping lines said in a statement. The new rates would apply until Sept. 30.

Shipping lines have been trying to contain costs to stem losses, as plunging freight rates last year led to unprofitable routes. Prices for 380 centistoke bunker fuel, a type of oil used by ships, have risen by about 29 percent this year.

Oil prices have risen partly because of the Middle East conflict and an oil embargo by Iraq.