PACIFIC CARRIERS PLAN LARGE RISES IN REEFER RATES FOR 2003

PACIFIC CARRIERS PLAN LARGE RISES IN REEFER RATES FOR 2003    Shipping lines of the Westbound Transpacific Stabilization Agreement are planning to introduce large increases in rates for westbound refrigerated meat shipments from the United States to Asia, effective July 2003.
   In a joint statement, the agreement carriers said that they will raise rates on frozen and chilled beef and pork, and on frozen poultry, by $800 per 40-foot container for all-water port-to-port shipments from all U.S. coasts, and by $1,000 per 40-foot container for intermodal inland point and minilandbridge moves, effective July 1, 2003. Also as of July 1, “carriers will no longer provide transfers of frozen poultry free of charge at West Coast container freight stations,” the carrier group said.
   The Westbound Transpacific Stabilization Agreement shipping lines said that the rate increases are intended to offset “sharp, steady declines in freight revenues that have occurred during the past two years.”
   The carriers’ adjusted base rates will remain in effect for a one-year period, through June 30, 2004. They will additionally be subject to all applicable accessorial charges in carrier tariffs at the time of shipment, the carrier group said. This will include a separate bunker surcharge that will float, subject to fluctuations in world marine fuel prices.
   The Westbound Transpacific Stabilization Agreement warned that “all new 2003 The Westbound Transpacific Stabilization Agreement carrier service contracts will contain clauses allowing for future implementation, at any time over the contract term, of charges aimed at recovering extraordinary security-related costs as they arise.”
   WTSA members are APL, COSCO Container Lines, Evergreen Marine Corp., Hanjin Shipping, Hapag-Lloyd, Hyundai Merchant Marine, “K” Line, MOL, NYK, Orient Overseas Container Line, P&O Nedlloyd and Yang Ming.