UK retailers face higher rates on Asian imports

British retailers, distributors and wholesalers that import goods from Asia are facing rises of up to 30 per cent in shipping rates from the start of next month. The Far Eastern Freight Conference (FEFC), which represents the leading shipping lines that move cargo from Asia to Europe, said that the move comes because "most lines are overbooked and this is an attempt to re-address some rate declines over 2005. We are trying to bring the rates back to levels that allow the lines to break even.

"The lines are facing cost pressures with manufacturing costs going up, the Suez Canal announcing an increase in its charges, and the cost of tugs and feeder vessels being impacted by the fuel costs." "There has now been a 60 per cent rise over the past six months. To give an idea on what this will cost the retailers through the UK, it is in the region of $600m (£319m)," said Nick Jones, chief executive of Redfern International Logistics, which imports products for distributors, retailers and wholesalers.

Alistair Grey, the British Retail Consortium's director in Brussels, said: "The small retailers will be hit the most. They will see a much higher rise in cost, probably double that of big retailers because they don't have the leverage to negotiate.