TSA members seek authority to discuss capacity

TSA members seek authority to discuss capacity A group that represents container carriers moving about 85 percent of the cargo between Asia and the United States has proposed modifying its discussion agreement on file with the U.S. Federal Maritime Commission so members have authority to jointly manage capacity.
   On Dec. 18, the Transpacific Stabilization Agreement filed an amendment to its agreement on file with the FMC, slated to take effect Feb. 1.
   Language inserted into the discussion agreement will give the 14 members of the TSA authority to discuss and reach agreements on 'cost savings and more efficient use of vessel and equipment assets and networks.'
   This would be done, the amended agreement said, 'through coordination of the members' capacity plans, layup, drydocking, or other off-hiring of vessels, rationalization of vessels and/or vessel capacity operated, or planned to be operated' by both TSA members or feeder ships employed by TSA members.
   Niels Erich, a spokesman for the TSA, said the group seeks to modify the agreement because of 'prospects for a sustained downturn' in the container business. TSA members are 'scrambling to find cost savings,' but he said there are no concrete plans on exactly how TSA would use the additional authority it would have under the revised discussion agreement.
   TSA members 'need every tool in the kit to make sure their fleets are scaled properly,' he said.
   TSA said in a forecast in October that full-year 2008 cargo demand would be off by as much as 8 percent compared to 2007, and that business might not see a turnaround until the second half of 2009.
   TSA's members include APL, China Shipping Container Lines, CMA-CGM, COSCO Container Lines, Evergreen Line, Hanjin Shipping Co., Hapag-Lloyd AG, Hyundai Merchant Marine Co., 'K' Line, Mediterranean Shipping Co., NYK Line, Orient Overseas Container Line, Yangming Marine Transport Corp. and Zim Integrated Shipping Services. In October, Mitsui O.S.K Lines announced its resignation from the group.
   The language added to the agreement can be found on the FMC Web site at https://www2.fmc.gov/agreement_lib/011223-043-P.pdf,. ' Chris Dupin