Shippers' Council reached agreement with North America Freight Conference

At a meeting held last week between representatives of The Israeli Shippers Council ( ISC ) and representatives of shipping lines, members of the Israel – US freight conference, a mutual understanding was reached enabling the shipping lines to increase rates.
 
However, the member lines accepted ISC's request not to apply any additional freight increases until the end of 2005.
 
The meeting was initiated by the shipping lines following a substantial reduction in container allocation to and from Israel was exercised by shipping companies. The latter prefer to accept cargo to and from Turkey, Greece and Jordan, where freight rates are relatively higher ( 50% - 70% ) compared to rates applied to the Israeli trade. The parties mutually agreed that in order to keep the present level of trade, general freight increase should be allowed.
 
The member lines requested a westbound increase of US$400/TEU and US$500/FEU and eastbound increase of US$200/TEU and US$250/FEU.
 
Delegates agreed that rates increase would be effective as from 1st April 2005 as follows: on the westbound trade US$300/TEU, US$400/FEU and on the eastbound trade US$125/TEU , US$175/FEU.