TACA plans rate hikes amid eastbound trade recovery

TACA plans rate hikes amid eastbound trade recovery    The Trans-Atlantic Conference Agreement shipping lines are planning to raise their eastbound tariff rates April 1, as a lower U.S. dollar exchange rate starts to bolster U.S. exports to Europe.
   The planned conference tariff increases are $120 per 20-foot container and $150 per 40-foot or 45-foot container, for traffic from U.S. Atlantic, Gulf and West Coast ports. The rate increases are expected to be used by member carriers as a basis for the negotiation of individual service contracts after existing contracts have expired.
   TACA said it plans to implement further rate increases later in the year “at a level and date to be decided and announced.”
   “The eastbound market is growing rapidly,” said David Jeffries, TACA’s general manager. Eastbound shippers have told TACA carriers they expect a 20 to 25 percent rise in first quarter volumes in some sectors, Jeffries added.
   The conference noted the contrast between the latest market trends and the sluggish growth of the eastbound transatlantic trade in recent years.
“The poor eastbound market conditions of recent years have led to depressed ocean tariff rates,” the TACA said.
   In 2003, the eastbound transatlantic container trade grew 1 or 2 percent, with TACA carriers increasing their combined volumes by more than 5 percent, according to the conference.
   TACA carriers cited positive U.S. economic indicators that “confidently suggest that the United States’ export growth will be sustainable and the effective devaluation of the U.S. dollar against the euro and the pound sterling will enhance or re-open markets in Europe to U.S. exporters,” TACA said.
   The conference also reported “the exceptional strength of first quarter eastbound bookings, giving rise to the prediction of very high utilization levels.”
   In a related development, TACA said it plans to review assessorial charges, such as free time and demurrage, and consider TACA tariff conditions for exports of a seasonal nature, such as agricultural products.
   TACA carriers are Atlantic Container Line, Hapag-Lloyd, Maersk Sealand, Mediterranean Shipping Co., Nippon Yusen Kaisha Line, Orient Overseas Container Line and P&O Nedlloyd.