The ministry, however, emphasized that it will help establish a more healthy and regulated shipping market.

Starting from August 1, member carriers of the Asia West-bound Rate Agreement raised shipping prices for Europe-bound services by 20 percent to an average of US$1,700 per TEU (twenty-foot equivalent unit), and increased the prices per FEU (40-foot equivalent unit) by 30 percent to US$2,800.

The AWRA is an international organization that provides information on the shipping industry and advises its members on price adjustments.

The price hikes drew an outcry from some domestic companies that export and ship the low value-added cargoes to Europe, as they further narrowed their profit margin.

The ministry officials stressed that it is normal for international carriers to set their prices based on the changing market demand, to encourage a fair and competitive environment in the global shipping industry.

However, in response to the price increases proposed in the AWRA's so-called rate restoration plan, the ministry instructed the organization's members to submit their new price quotations to the authorities for future reference.

It also demanded that all AWRA member companies inform the government-authorized Shanghai Shipping Exchange of any planned price adjustment at least 30 days before it becomes effective, as required by the Chinese law.

In addition, the ministry said it will accelerate its legislation process to improve the operational standards of international shipping organizations. Late last year, China's shipping market gained strength, mainly fueled by a recovering global economy and a favorable domestic trading environment.

Exporters complained that the frequent price raises on international shipping routes, particularly the Europe-bound, greatly increased their operating cost.

So far, the AWRA members have raised their prices for services between Asia and North Europe twice this year.

In April, the prices rose more than 10 percent, or US$150, for every TEU, and climbed again by 20 percent, or US$250, last month.

The ministry said more frequent services on the Shanghai-Europe route will help create a more balanced shipping market.

(The Dragon News net)