CTSA to raise rates Jan. 15

CTSA to raise rates Jan. 15    Member lines of the Canada Transpacific Stabilization Agreement said Monday they are raising rates in January ahead of previously announced planned rate increases in May, 'seeking immediate relief' from low rate levels between Asia and Canada.
   'Container lines serving the market from Asia to Canada ' cannot wait for May 1, 2010 rate increases, with operating cost pressures jeopardizing service levels,' the lines said in a statement.
   The 10 CTSA members will raise Asia/Canada rates across the board by $400 per 40-foot container for Vancouver local and door cargo, and by $500 per 40-foot container for all intermodal and East Coast all-water shipments. The new rates will apply to all CTSA origins, including Pakistan, Sri Lanka and Bangladesh, and go into effect Jan. 15.
   CTSA said the interim increase applies to existing rates only, and does not replace the previously announced May 1 increase of $800 per 40-foot container for Vancouver local and door cargo, and $1,000 per 40-foot container for intermodal and East Coast all-water moves, which will be applied to all long-term contracts going forward in 2010.
   'This is a make-or-break period for ocean carriers globally, but especially in the Pacific,' said CTSA Executive Administrator Brian M. Conrad. 'Current rates are unsustainably low, and lines are looking ahead to a likely increase in cargo and service demand heading into 2010. There is just no way they can continue on the course they've been pursuing all the way through next spring.'
   Last week, CTSA announced it was raising bunker surcharges and its currency adjustment factor to help offset increased operating costs.
   CTSA member lines are APL, COSCO Container Lines, Evergreen, Hapag-Lloyd, Hyundai Merchant Marine, 'K' Line, NYK Line, OOCL, Yang Ming and Zim Integrated Shipping Services.