Zim joins TSA, which will hold two shipper meetings in June

Zim joins TSA, which will hold two shipper meetings in June Zim Integrated Shipping Services said Friday it is joining the Transpacific Stabilization Agreement June 23, following in the footsteps of rivals Mediterranean Shipping Co. and CMA CGM, which joined the conference earlier this year.
   Zim's move brings the number of carrier members to the ever-expanding discussion agreement to 14, three of which have arrived since the TSA changed its leadership structure at the turn of the year.
   'We're pleased by Zim's vote of confidence in TSA's new structure and the shift in how we engage with the shipping community to provide improved insight into market dynamics shaping the transpacific trade,' said TSA Chairman Ron Widdows, who is also chief executive officer of Singapore-based carrier APL Ltd. 'We believe this new, more transparent approach, with growing carrier and shipper support, will enable shippers to better plan for their supply chain needs and carriers to more efficiently plan their services to meet those needs.'
   Zim, based in Haifa, Israel, and with regional headquarters in Norfolk, Hamburg and Hong Kong, operates a worldwide fleet of 100 vessels with a combined carrying capacity of about 240,000 TEUs, calling 180 ports. It offers five scheduled transpacific service strings, with additional intra-Asia feeder services, and is in the midst of a five-year, $2 billion program to build 20 new ships for worldwide service.
   Zim joins TSA at a time when analysts and carriers anticipate robust cargo volumes in the 2007 peak season, the conference said in a statement. TSA executive administrator Brian Conrad said that after a lull due to holidays in China and Japan in early May, utilization levels are again climbing. They are expected to reach mid- to high 90 percent levels by June, and remain at or above these levels throughout the peak season.
   Precise results of the 2007 contracting season are still being evaluated as not all contracting has been concluded, Conrad indicated. However, as predicted by industry analysts earlier this year, rates are moving upwards in this year's contracts. Over the next few weeks TSA will be reviewing 2007 results, with the aim of determining revenue objectives needed in the coming year, for carriers to continue their investment in vessels and services.
   Meanwhile, the TSA also said that it would hold two meetings in June with Asia-U.S. freight shippers, building on its first meeting in Long Beach in March. The meeting will be held in San Francisco June 7 and New York June 25.
   'Our goal is to continue the successful conversation begun earlier this year on matters of mutual interest to shippers and carriers, and to broaden the discussion to more customers of all sizes and types, from across the U.S.,' Widdows said.
   He also indicated that an expanded list of invitees to the upcoming meetings includes attendees from the Long Beach session to maintain continuity. Customers who had expressed interest in the first meeting but either had not received an invitation or were not able to attend and a representative sampling of new shippers and transportation intermediaries are also invited.
   TSA's executive committee of carrier chief executives has set tentative agendas for the June meetings based largely on shipper feedback from the March meeting. A brief introductory presentation and general discussion, followed breakout sessions, is expected to focus on a range of topics ranging from fuel costs and bunker surcharges, to overall operating cost issues, to infrastructure and congestion concerns, to the service contract cycle and the contracting process itself.
   'We're pleased with the degree of interest that has been expressed concerning these meetings,' Widdows said. 'We're mindful of the feedback coming out of Long Beach in favor of smaller, focused groups, but we also recognize the need to broaden participation as much as possible and will work with shippers to achieve the right balance as we go forward.'