Asia/Canada carriers agree rate increases for 2005
Shipping lines of the Canada Transpacific Stabilization Agreement (CTSA) have agreed to a schedule for rate increases for 2005, designed to recover operating and infrastructure congestion costs.
Effective with contract renewals, but no later than May 1, CTSA lines intend to raise freight rates by the following amounts:
* West Coast Canada, $190 per 20-foot container, $240 for all other sizes.
* Inland point intermodal/mini landbridge, $280 per 20-foot container, $350 for all other sizes.
* All-water East Coast Canada, $345 per 20-foot container, $430 for all other sizes.
“The adjustments reflect an analysis of current and forecast cost trends in the Asia/Canada market,” CTSA members said.
CTSA members fear that cost impacts could significantly worsen during 2005, due to the system-wide impacts of Canadian rail and U.S. port congestion.
“Bunched sailings and delays in Southern California ' limit port calls and time in port elsewhere, as carriers struggle to meet tight supply chain schedules. This makes added Northwest rotations impossible. Finally, rail congestion limits overall intermodal network capacity in Canada,” CTSA members said in a statement.
CTSA lines said they will monitor these and other market and operational issues, and may make further cost recovery adjustments in 2005 as they deem necessary.
CTSA members are APL, COSCO Container Lines, Evergreen, Hanjin Shipping, Hapag-Lloyd, Hyundai Merchant Marine, “K” Line, Lykes Lines, MOL, NYK Line, OOCL and P&O Nedlloyd.