Members of the Europe/Mediterranean Trade Agreement (EMTA) decided to introduce a GRI of US$50 per TEU on containers imported to Israel, effective from 15th May
The decision to introduce the GRI was conveyed to Mr. Gad Schaefer, the Israel Shippers' Council chairman, by Mr. Peter Weber EMTA's secretary general.
In a letter sent to Mr. Schaefer, Weber noted that the yield on freight rates continues to be undermined by the high level of operating costs. Since most costs were beyond the control of the lines, they had no alternative but to raise rates. He added that in order to keep service level intact the member lines would have to raise rates.
Weber also suggested in his letter that a meeting would be arranged to discuss the matter.
In his reply, a copy of which was sent to Mrs. Ronit Ken, Antitrust Commissioner, Schaefer strongly expressed the ISC objection to the decision taken by EMTA lines arguing that no consultation had taken place prior to the decision by the lines.
Schaefer also noted that the ISC was unable to accept the GRI since over the last year certain ship's costs had been declining.
Schaefer, nevertheless, accepted the suggestion put forward by Weber to have joint consultation in early May.
