Shipping Corporation of India hikes container rates by 80%

State-run Shipping Corporation of India (SCI) today increased its container freight rates by up to 80 per cent on the Europe, Mediterranean, Black Sea and Red Sea trade routes. As a result, a standard 20 feet container's rate will go up by USD 300 to USD 750, a senior official of the loss-making company told PTI here.

Similarly, for a 40-feet container, the rate will go up by USD 600 to USD 1,350, the official said. The revised rates are effective from September 1, the company said in a statement.

"There has been an uptick in the fuel costs, insurance premiums and port handling charges. Even without those, this has been long overdue as we are suffering from operational losses," the official said.

According to the official, the rates have plummeted from USD 1,400 to the current USD 450 per TEU over the last one year. "This is not the first time that we have tried increasing the rates. Every time we try, competition forces us to reduce the rates. This time I hope we will be able to hold," the official said.

The shipping industry world-over has been facing turbulent times due to excess supply of capacity in the market and the slowdown on the economic front after the post-Lehman crisis slowdown.

The Shipping Corporation of India reported a net loss of Rs 98.70 crore for the June quarter, its third straight quarterly loss. It had posted a net loss of Rs 114.31 crore in FY'13. The company scrip jumped 7.73 per cent to Rs 32.75 apiece on the BSE today.