Asia/Canada carriers plan second rate increase
Transpacific container shipping lines operating in the Asia-to-Canada trade plan to implement a second eastbound rate increase Aug. 25 in addition to the traditional May 1 yearly increase already implemented.
The second price increase is “in an effort to meet increased service needs and steadily rising costs,” the Canada Transpacific Stabilization Agreement said in a statement Thursday.
Effective Aug. 25, the Canada Transpacific Stabilization Agreement member carriers intend to raise rates $250 per 40-foot container, $200 per 20-foot container and $315 per 45-foot container.
A peak season surcharge of $400 will remain in effect as adopted, through Oct. 31, the carrier group said.
The carrier agreement said the strong Canadian dollar has contributed to sustained inbound-outbound cargo and equipment imbalances. It has also meant higher operating and administrative costs in Canada relative to freight rate earnings.
“Carriers additionally face high charter and equipment costs associated with new direct China services, while terminal charges and inland intermodal rates have increased in response to congestion,” the carrier group said.
It was not known whether the Asia-to-U.S. Transpacific Stabilization Agreement is also considering a second rate hike for this year.
The Canada Transpacific Stabilization Agreement said previous forecasts for 10 percent cargo growth in 2004 appear to remain on track, given utilization levels and advance bookings to date.
Carriers of the Canada Transpacific Stabilization Agreement are: APL, COSCO Container Lines, Evergreen, Hanjin Shipping, Hapag-Lloyd, Hyundai Merchant Marine, “K” Line, Lykes Lines, Maersk Sealand, MOL, NYK Line, OOCL and P&O Nedlloyd.