MercoPress. South Atlantic News Agency

Easing of freight rates helps salmon and fruit exports

In spite of the Panama Canal rates increase last May, overall 2005 hasn't been such a bad year for the Chilean maritime freight companies.

Pedro Pablo Rioja from freighters CCNI said that following the 45% surge in Panama Canal rates, by the end of the second quarter freight costs ceased to increase and in the second half of the year actually began decreasing, overall and to all destinations.

"Chilean salmon and horticulture exports benefited from this tendency with freight rates actually dropping as much as 20%", indicated Mr. Rioja.

And in spite of the fact that freight vessels have incorporated two surcharges, one because of fuel which can reach 150 US dollars per container and the second originated in the Panama Canal with an average 100 US dollars per container.

"These surcharges have been compensated by lower rates given the lesser freight demand", explained Mr. Rioja adding that less forestry and fish meal shipments have had an impact in overall traffic.

Last May Panama Canal authorities made official 50 US dollars per deck stowed container. May 2006 and 2007, an additional 10% increase has been anticipated.

Chile Fruit Producers Federation president Luis Schmidt confirmed the lower freight rates and revealed that many more cargo vessels are now available. However, "much depends on the cargoes destination and the type of cargo and bargaining".

But lower freight rates, admits Mr. Schmidt will help compensate the lower US dollars income from exports because of the strong appreciation of the Chilean currency.