JEDDAH, 1 August 2006 — According to market sources here, shipping companies operating in the Middle East are considering a huge increase - between 33 percent and 63 percent - in freight charges for ships passing close to the present Middle Eastern conflict zone. The present price $550 for a 20-foot container would go to $900 and for a 40-foot one from $900 to $1,200 if the increase is implemented. The move follows the intensified presence of Israeli bombers over Lebanon particularly after the bombardment of the Qana - Tyre port road in Lebanon. This has also led to a sharp rise in the crude price.
Once introduced, the increased freight charges are likely to continue till the end of the year as projections point to a surge in the volume of imports and exports. Shipping companies are likely to notify their customers of the higher charges soon.
The region’s shipping companies registered an 11 percent profit in the past three months compared to the same period last year. The profits were a direct result of the last increase in charges of $150 for 20-foot containers and $260 on 40-foot ones. A number of ship owners look forward to an increase in the shipping fees, which would help them, offset past losses. Their hopes have been high because of the projected 30 percent increase in the volume of export-import in the region for the remainder part of the year.