Committees Briefing 2000
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Transport, Shipping & Maritime Committee

Freight rates 2001 - October 2000

AmCham Egypt’s Shipping & Transport Committee met October 22 to discuss freight rates for the year 2001. Vice-chairman Alfred Assil welcomed speakers Sherin Naggar, CEO of Egyptian Integrated Transport Holding, Tarek Fahmy, chairman and managing director of MSC Egypt, and Karim Salama, CEO of Salamarine Egypt Co. Ltd and also chairman of the committee.

The speakers stressed that while shipping is considered the backbone of world trade and the cheapest mode of transport, the industry faces serious challenges that need to be addressed. The most important current issue for shipowners is the steadily rising price of fuel over the past year and a half. This phenomenon has pushed owners to demand that shipping lines reduce freight rates. Meeting participants, however, agreed that this would not provide the solution for the industry’s woes.

A tighter ship must be run on all fronts, the committee agreed. There must be greater vigilance regarding the charges levied by supervising authorities, unwarranted charges in ports and misconduct on the part of customs clearing agents. Shoddy shippers’ procedures, poor dialogue between shippers and sea lines, and the recurring presence of middlemen, who raise costs, are all major problems in the industry, participants said. Every extra person involved in the shipping process increases owners’ financial burden. Greater efficiency must be achieved.

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