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Exporters are calling for negotiations with shipping firms over skyrocketing time charter rates that are the primary cause of significant increases in the cost of outward bound international shipments, according to Paiboon Ponsuwanna, chairman of the Thai National Shippers' Council, the Bangkok Post reported.
Many shipping companies failed during the recent global economic crisis, which was a major factor in the significant decrease in time charter rates last year, he said.
But exports from Asia to Europe surged in the first quarter of the year due to a rise in orders to replace inventories that had not been replenished during the global crisis of the past two years, said Paiboon.
The surge in export demand has caused rates to rocket due to the reduced shipping capacity. Exports in the second and third quarter should be stable, but the situation is still hard to predict, said Paiboon.
Thailand to Europe rates have almost doubled to US$2,000 to $2,200 per TEU compared with $1,200 at the end of last year.
''This is a significant change because Europe hasn't been able to increase rates in the past 10 years," said Paiboon.
Cargonews Asia
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