The composite China Container Freight Index, compiled weekly by the Shanghai Shipping Exchange as a barometer of the international container market, closed up 0.9 percent at 942.02 on Friday, mainly fueled by growth in shipments to the United States and Europe.

"Exports from the Far East to the United States have been increasing since February, thanks to a recovery in US consumers' purchasing power," said Zhu Jinghai, an information officer at the exchange.

"As a result, carriers are gradually regaining their confidence in the market and making plans to increase prices," Zhu said.

U.S. West Coast-bound service increased 1.2 percent and East Coast-bound service jumped 3.3 percent from a week earlier.

The Trans-Pacific Stabilization Agreement recently pushed up its annual forecast of trans-Pacific container volume, calling it likely to grow 5 percent to 7 percent this year. Last year, it gained only 1.3 percent.

"An additional US$150 may be charged for each TEU (20-foot equivalent unit) on US-bound routes starting from June 1," according to Violet Zhu, Shanghai office manager for China Sea Marine, a major forwarding agency.

Encouraged by the market trend, Mediterranean Shipping Co. said it will open an Asia-US East Coast route at the end of the month.

The index for European-bound service rose 0.9 percent.

Market participants said that freight rates for Europe will probably exceed US$1,000 per TEU soon, compared with US$800 to US$900 now. The participants cited China's improving export environment.

(eastday.com May 20, 2002)