MercoPress. South Atlantic News Agency

Sea freight rates almost double in twelve months

Sea freight costs leaving Chile have increased 90,5% in the last twelve months according to the Index of Sea Export Freights, IFNE which is calculated by the Manufacturing and Services Export Association of Chile.

Apparently the IFNE index in March 2004 stood at 120 points, but has since jumped to 228 points, equivalent to a 90,5% increase. Compared to last December (227) the index also shows a 0,5% advance.

The index according to Chilean exporters includes transport rates to the most frequent ports of call such as those in the Western coast of United States, Atlantic, Gulf of Mexico, Europe and Far East.

The average price to ship a dry 20 feet container to any of the 16 ports considered last March had a cost of 2,134 US dollars.

Some of the ports with the highest increases in the first quarter of 2005 include Guayaquil 28%; Inchon, South Korea, 12%; Okinawa, 5% and Shanghai 4%. On the other hand Manzanillo in Mexico dropped 28,8% and Bilbao, Spain 7,6%.

However compared with a year ago soaring freight rates have been particularly strong for South Korea, 155%; Japan, 118%;China 104%; Ecuador 121%; Colombia 100%.

In United States, New Orleans figures with a 112% increase but the Everglades in Florida and the West Coast 70%.

The Chilean exporters report also indicates that the strong surge of freight rates which began globally in the second half of 2003, but only started to be felt in Chile during the first quarter of 2004, currently seems to have reached a mid term stability.

As to the toll increase in the Panama Canal which becomes effective next May 1, its effects will begin to be felt in June, forecast Chilean exporters.