Asia/Canada carriers to raise rates in 2004/2005 season

Asia/Canada carriers to raise rates in 2004/2005 season    Container shipping lines of the Canada Transpacific Stabilization Agreement plan to raise eastbound transpacific freight rates again next May for the 2004/2005 season. Effective May 1, 2004, the carriers plan to increase freight rates across the board by: $450 per 20-foot container,    $600 per standard 40-foot box, $675 per 40-foot high-cube container, and $760 per 45-foot container.
   Following a similar announcement in September by the Transpacific Stabilization Agreement, which covers the Asia-to-U.S. trade, the carriers of the Canada Transpacific Stabilization Agreement said “they are looking forward to a robust freight market during the 2004-05 season, with cargo demand outpacing last year’s record totals.” The carrier group cited estimates that transpacific ship capacity would
increase 7-9 percent in 2004, against a 10 percent rise in cargo demand.
   The rate increases for the Asia-to-Canada trade compare to the Transpacific Stabilization Agreement’s announced price hikes of $450 per FEU from Asia to the U.S. West Coast and $600 per FEU from Asia to the U.S. East Coast, also effective May 1, 2004.
   The Canada Transpacific Stabilization Agreement voiced optimism “about further economic recovery, recent increases in durable goods orders and other business spending on top of healthy retail sales; a need to replenish manufacturing, wholesale and retail inventories, and the ongoing shift in global manufacturing to Asia.”
   The agreement carriers also plan to reinstate a peak season surcharge of $400 per 40-foot container, effective June 1 through Oct. 31, 2004, and introduce a new    “mini-landbridge/inland point intermodal (MLB/IPI) surcharge” of $190 per 20-foot container and $250 per 40-footer, effective Jan. 1.
   The carriers said that this charge is being implemented “to recover the increased costs associated with the ongoing trade lane equipment imbalances, reduction of storage facilities for equipment and the costs associated with the shifting of equipment.”
   “Recent rate increases have helped reverse some of the dramatic revenue losses incurred in the 2002-03 season, but they do not fully recoup losses over time,” the Canada Transpacific Stabilization Agreement said in a statement.
   The Canada Transpacific Stabilization Agreement carriers are: APL, COSCO Container Lines, Evergreen Marine, Hanjin Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine, “K” Line, Maersk Sealand, MOL, NYK Line, Orient Overseas Container Line and P&O Nedlloyd.