TSA focuses on revenue improvement

TSA focuses on revenue improvement    The Transpacific Stabilization Agreement said it is “pressing ahead with revenue improvement efforts” as the Asia-U.S. freight market begins to gradually improve.
   The discussion agreement of 15 container carriers participating in Asia-to-U.S. trade, in a statement voiced “optimism about the outlook for Asia-U.S. trade in 2010, based on a combination of economic indicators and forward bookings during the off-season Lunar New Year period.” This year the Lunar New Year begins Feb. 14.
   TSA estimated 2009 cargo demand at 15 percent to 20 percent below 2008 levels, but said carriers “are looking forward to a significant year-on-year increase in 2010 traffic.”
   Among the factors it cited as positives were:
   ' Bottoming of the U.S. job market.
   ' Better-than-expected 2009 holiday sales.
   ' Rising U.S. consumer confidence and spending.
   ' Retailers and other businesses needing to replenish inventories.
   ' Companies needing to upgrade physical and technology infrastructure.

Widdows

   “Forward bookings by the individual TSA lines suggest that vessel utilization levels in the trade will remain in the mid-high 90 percent range in most trade segments in the coming months, with a typical dip for the Lunar New Year period in Asia when factories are closed, but picking up quickly after that.” the group said.
   TSA said its members' short-term focus is on revenue improvement in the second half of the 2009-10 contract year.
   Many rates in major commodity segments are down $1,000 or more per 40-foot container from late 2008 levels, the group said. TSA said its members are “actively pursuing a previously announced emergency revenue charge (ERC) and that carriers are seeing a high degree of success leading up to the Jan. 15, 2010 effective date.”
   In December the TSA said member lines announced the voluntary guideline ERC of $320 per 20-foot container, $400 per standard 40-foot container, $450 per high-cube 40-foot container, and $505 per 45-foot container.

Kim

   Meanwhile, the TSA said Ron Widdows was stepping down as chairman of the group after three years and was being replaced by Hanjin Shipping Co. President and Chief Executive Officer Y.M. Kim.
   The group said it will also expand the size of its executive committee from four to six with Maersk Line and OOCL joining APL, Evergreen Line, Hanjin, and NYK Line. It also said the committee will be “increasingly active, meeting more frequently than in the past, intensifying engagement with TSA's broader membership to provide better visibility and accelerate the decision making process.”
   TSA members are APL, China Shipping, CMA CGM, COSCO Container Lines, Evergreen, Hanjin, Hapag-Lloyd, Hyundai, 'K' Line, Maersk, Mediterranean Shipping, NYK Line, OOCL, Yang Ming and Zim.