The Westbound Transpacific Stabilization Agreement has recommended
to its members an increase in fuel adjustment factors, effective Oct. 1.
According to the fuel surcharge calculation formula originally used by
the now defunct Transpacific Westbound Rate Agreement, the westbound bunker charge can be
increased on Oct. 1 from $20 to $40 per FEU.
The calculations are made available quarterly by the WTSA to its
carrier members, who make adjustments on a voluntary basis. Unlike conferences, discussion
agreements such as the WTSA have no authority to make binding decisions on rates and
surcharges.
"Tariff cargo and cargo under contracts without all-in rates will
likely see the fuel adjustment factor increased," a spokesman for the transpacific
agreement said. "That will be almost entirely westbound."
However, the increase in bunker surcharges won’t apply to most
shipments. Much of the transpacific cargo in both directions moves under contracts with
pre-negotiated all-in rates locked in for the life of those contracts.
Most major transpacific carriers belong to the WTSA.
WTSA RECOMMENDS WESTBOUND FUEL CHARGE HIKE
WTSA RECOMMENDS WESTBOUND FUEL CHARGE HIKE
