U.S./Asia freight rates to rise, China ‘free time’ curtailed
Container shipping lines in the Westbound Transpacific Stabilization Agreement (WTSA) said they plan to increase freight rates for shipments of metal scrap by $150 per 40-foot container and $120 per TEU, effective Feb. 15.
“The demand for scrap has grown as industrial production throughout Asia, particularly in China, has led to scarcity and rising prices for steel, copper, aluminum and other metals,” WTSA said in a statement.
Metal scrap has been the second-largest containerized cargo moving from the United States to Asia during the past year, with more than 235,000 TEUs shipped during the first nine months of 2005.
WTSA carriers have also decided to limit the “free time” allowed for delivery of cargo and return of container equipment in China.
Effective also on Feb 15, equipment detention charges will begin to accrue at Chinese destination points after 12 calendar days of free time.
“Shippers occasionally take advantage of free-time allowances to ship loads of scrap metal before actually lining up a Chinese buyer,” the WTSA said. The limit on free-time allowances aims to “to improve equipment availability and recover delay-related costs.”
WTSA’s member lines are: APL, China Shipping Group, COSCO Container Lines, Evergreen Marine Group (Taiwan), Hanjin Shipping Co., Hapag Lloyd Container Linie, Hyundai Merchant Marine Co., Kawasaki Kisen Kaisha (“K” Line), Nippon Yusen Kaisha (N.Y.K. Line), Orient Overseas Container Line, and Yangming Marine Transport Corp.
U.S./Asia freight rates to rise, China ‘free time’ curtailed
