Railways Freight Rate in China raised up to 10%

China

China has raised railway freight prices across the board by nearly 10% in order to cover increased operational costs, as told by the authoritative sources.

The increase of domestic railway freight rate by CNY (Chinese Yuan Renminbi) 0.01 (USD 0.0016) per tonnes per kilometer, announced by the China’s Ministry of Railway and National Development and Reform Commission namely an average growth of 9.5%, to CNY 11.51, in order to relieve pressure from higher fuel and labour cost.

The increase this time covers coal, grain, fertilizer, iron ore and many other kinds of cargo. Industry opinions pointed out that the raise will pass the pressure on to the industries that are heavily reliant on railway transportation, like steel plants.

Shanghai Steel Service Trade Industry Association Secretary Mr. Liming said the increase will have severe negative effect on the steel trade industry which is already gloomy. Though the industry has expected a rate increase, the timing and extent of the increase will put "unbearable" pressure on some companies, Mr. Ye said.

Source: http://www.transreporter.com/