SCI plans another round of container freight hike

State-owned Shipping Corporation of India (SCI) plans to go for another round of container freight hike shortly.

Company officials said this will help the country’s largest shipper get its container segment operations back in the black.
In the February-March period, SCI had effected an 8% hike in container freight rates.

“The market has been able to absorb the earlier hike to the extent of 50% to 60%. We are contemplating another round of rate hike,” said a senior official from SCI.

With increasing operating costs- wherein bunker costs is significant contributor, shipping companies- both Indian and global- have been increasing freight rates to ensure container operations are not-loss-making.

For the past few quarters, SCI has been reporting a loss for its container segment. The senior official expects once the new round of hike is affected, container operations would be able to breakeven.

“If this planned hike in rates is successful we would able to breakeven in the container segment for the June quarter,” the official stated.

SCI’s container segment has been in the red since March quarter. For the December quarter, the company had reported a loss of Rs24.1 crore in the container segment.