US to China Shipping Fees to Rise
By: Lance Winslow
Diesel Fuel is starting to affect international trade in a very big way and this could hurt the United States trade deficit as well as the Chinese economic momentum as their currency starts to rise. Big issues on the forefront indeed as these additional charges start to affect shipping costs for ships moving containers.
Currently most of the container shipping companies are charging increased fees due to the diesel fuel costs to run their ships to bring products from China to America. Now the same shipping companies are going to have to start charging United States companies to ship products to China and there is quite a bit trade growing on both sides. Typically they were just happy to refill empty cargo ships going back with anything they could, not anymore.
There are currently about 13 large shipping companies that move containers each way and they are part of the transpacific stabilization agreement and now they will surcharge $150 on every container ships to China in the East. This will start October 1, 2006 and it will be adjusted quarterly and therefore it will also affect many OPEC nations, as well. This means they will pay more for goods they get shipped and pay more for anything that they export.
Industry analysts in the shipping business save it over 80% of all global trade goes by these large cargo container ships. Very little goes by air or train as it crosses borders. This is because ports are very efficient. Please consider all this in 2006.
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