The Transpacific Stabilization Agreement, the group of ocean carriers in
the Asia to U.S. trade, announced its recommendations for another wave of increases in
eastbound Pacific rates for next year.
The carrier discussion group said that it plans to increase current
rates across the board by $400 per 40-foot container, effective May 1, 2000. It also
announced a $300-per-40-footer peak season surcharge to cover added ocean carriers’
operating costs during the period from July 1 to Oct. 31, 2000.
The rate increase and surcharge will apply to both tariff and service
contract cargo. Rate increase initiatives endorsed by TSA lines, however, are voluntary
and non-binding and their implementation depends on the individual carrier.
TSA and other transpacific carriers had lifted eastbound rates by $900
to $1,000 per 40-foot container last May.
"Based on their review of the market, the individual TSA lines
believe that the year 2000 increase and surcharge will be supported by cargo demand,
available vessel space and other market factors," a spokesman for the carrier group
said.
The carriers are forecasting a cargo growth of 8 percent eastbound in
2000, on top of the 10-15 percent growth expected for all of 1999.
The sustained growth in traffic volumes "is expected to absorb
much of the additional vessel space announced by new and established Pacific services
during 1999-2000," the carriers said.
In a related development, the TSA carriers said that recent labor
actions will increase cargo handling and shorthaul trucking charges at North American
ports.
TSA carriers are: APL, COSCO Container Lines, Evergreen, Hanjin
Shipping, Hapag Lloyd, Hyundai Merchant Marine, "K" Line, Mitsui O.S.K. Lines,
Maersk Line, P&O Nedlloyd, NYK Line, Orient Overseas Container Line, Sea-Land Service
and Yangming Marine Transport.
