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European Cargo to Cost More for Rising Shipping Prices
Carriers operating Europe-bound services are determined to raise shipping prices despite the fact that the industry is sailing into its off-season.

The composite China Container Freight Index closed at 1014.44 points on Friday, up 1.3 percent from a week earlier. The index tracks both prices and volumes on 11 global shipping lines linking China to major world ports.

Among all routes, Europe-bound services jumped 6.6 percent to 1197.20 points, compared with a week earlier.

"The hike is part of shipping owners' annual plans which were set last year to be implemented despite the gloomy market," said Zhu Jinghai of the exchange.

Most shipping companies sign a fixed yearly deal with clients each January, according to which neither party could change the price afterward.

Zhu said a lack of cargo may cripple the price-raising plans.

Elsewhere, Japan-bound services dropped 2.4 percent to 822.50 points.

U.S.-bound services remained stable over the past week, edging up only 0.4 percent to 1174.26 points.

"The trade between Asia and the U.S. weighs more than a possible war towards Iraq to those shipping companies as they're planning a total of more than 600,000 extra TEUs on the routes linking Asia and the U.S.," said Zhu.

(eastday.com January 13, 2003)

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