of Stevedoring Services' recent decision to up the cost of servicing Hamilton docks.

Both Bermuda International Shipping Limited, which operates Bermuda Islander , and Container Ship Management, which runs Oleander , announced they were implementing freight increases effective February 6.

The increases, the same for both companies, put the cost of shipping dry containers up by $125 and refrigerated containers by $150.

BISL said in a newsletter to customers this week that it had hoped to maintain its current rate levels "well into 1995''.

"However, recently published increases in port and stevedoring charges both in the United States and in Bermuda compelled the line to file with the Federal Maritime Commission in Washington DC prompt adjustments in order to cover these additional expenses,'' the newsletter said.

CSM, calling the port and Stevedore increases "substantial'', told customers in a letter yesterday: "While this is the second consecutive year the line has increased its freight rates, it should be realised that the general rate levels after this latest increase is only slightly higher than that of 1985.

And 1995 rates in some instances remain even lower than those of 1985. The Line even after the extensive cost cutting of the past years, is only just regaining the positive results necessary for responsible investment in equipment for the future.'' BISL's newsletter said "an innovative early payment discount system for qualified shippers and receivers'' had been so well received by the Bermuda importers that BISL had decided to keep the scheme in effect "even though the huge cost of this system practically eliminated the net effect of the last general rate increase announced in the latter part of 1993''.

To further help out customers, it said that during the first two months of 1995, it would replace 90 percent of its refrigerated containers with brand-new equipment.

And its programme to upgrade its fleet of dry cargo containers, started a few moths ago, would continue.

Stevedoring Service boss Mr. Lohan had justified his company's rate increase for servicing Hamilton docks last month by saying worker wage increase settlements each year had "far outstripped'' other cost increases.