Exports scramble as shipping charges set to double

A scramble to export waste materials to the Far East has kicked off at ports across the UK following news that container charges are expected to double from next week.

The Far Eastern Freight Conference, which represents shipping lines that export containers to countries including China, has revealed that its members are likely to hike up their overall export prices by $800 a container from October 1.

The news adds to initial freight price rises announced earlier this month and has prompted fears that waste materials could be stockpiled at ports, while the price of recovered materials could fall - particularly the price of waste paper.

Rod Riseborough, of the FEFC in London, told letsrecycle.com today that although the exact price rise would depend on each shipping line, the organisation had recommended it be "around the $800 mark" for a 40 foot container.

He said: "It is a doubling. This is the first real increase for almost two years. We have over the last year tried to encourage the shipping lines to put up their prices in small increases but the market has refused to take them. It is now peak season westbound and for some lines it pays them to take containers empty so they can take them back as soon as possible."

Mr Riseborough explained that for the shipping lines, it would not necessarily matter if they lost some of their Eastbound cargo as the Westbound imports to the UK were much more valuable.

He said: "The lines are prepared to lose some cargo in order to keep their rates up. In some cases they are physically losing money and they might as well take empty ships back and not have them stuck in a year for three weeks waiting to be unloaded."

Source:letsrecycle.com