Asia/Canada carriers to lift rates

Asia/Canada carriers to lift rates    Member carriers of the Canada Transpacific Stabilization Agreement have agreed to a schedule of freight rate increases for 2007-2008 to “address current and forecast increases in operating costs.”
   Effective with contract renewals, but no later than May 1, 2007, the CTSA lines intend to raise freight rates by the following amounts:
   * $300 per FEU for Vancouver local cargo.
   * $650 per FEU for inland point and mini-landbridge intermodal shipments.
   * $500 per FEU for cargo moving all-water to East Coast Canada, as well as reverse inland point intermodal moves
   “Lines stress the particular need for rate recovery in light of continued rising import volumes, and a widening cargo and equipment imbalance,” CTSA members said.
   “CTSA estimates significantly higher costs in the coming year for equipment handling, inland transport and other aspects of carrier operations related to this overall imbalance. It also forecasts increases in Asia feeder service rates; rising marine container prices due to higher steel costs; carrier investments in terminal productivity; and increased costs related to infrastructure and security improvements.
   “Fuel cost recovery remains an urgent need in the Asia/Canada market, where the cost of a single sailing has increased by several hundred thousand dollars in the past year. CTSA says it will redouble efforts in 2007 to achieve full recovery through the bunker surcharge and similar mechanisms.”
   CTSA members are APL, COSCO Container Lines, Evergreen, Hanjin Shipping, Hapag-Lloyd, Hyundai Merchant Marine, “K” Line, MOL, NYK Line, OOCL and Yang Ming.