13 October 2003 20:15
Trans Siberian rates to soar
FROM next January freight rates on the Trans Siberian Railway are set for a large rise in the name of improving
security which, coupled with a recent increase, may stem the cargo growth rates seen this year, writes Sam Chambers in
Hong Kong.
In September the Russian government increased rates by $200 to $1,900 per teu. Now a stinging $400 increase will see
rates substantially pass the psychologically important $2,000 barrier.
After the $250 westbound increase on ocean carriers heading to Europe from January 1 the difference between rail and
sea will be just $200.
The new security rates will be set at 0.7 of a rouble per km on the 8,198 km stretch of railway which links
Vladivostock to Europe.
This will hit South Korean shippers, the railway's big- gest users hardest. Last year South Korean cargoes
accounted for 100,000 teu.
Based on this, the proposed rise would hit Korean shippers for a combined $40m a year.
The South Korean government will ask its Russian counterpart to defer the implementation of the security rates.
A total of 123,000 teu travelled by train between Asia and Europe on the railway in the first seven months of this
year, up 70% year-on-year.
Analysts put this record figure down to shippers opting to avoid the ocean route where rates have shot up.
Russia's decision to implement consecutive rate rises amounting to $600 will dampen many shippers'
new-found enthusiasm for rail.
[UKIR [UK & Ireland Intelligence Wire]] |
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