Higher rates for U.S. boxes to Asia
A group of 10 container carriers will seek to increase westbound transpacific freight rates early next year.
The Westbound Transpacific Stabilization Agreement (WTSA) said, effective Feb. 15, its members will recommend a new 2010 general rate increase (GRI) for dry cargo. This will include commodities exempt from tariff filing.
The increase is $100 per 40-foot container and $80 per 20-foot container via the California ports of Los Angeles and Long Beach. For other ports on the West, East, and Gulf coasts, including inland point intermodal moves, the increase will be $150 for 40-foot containers and $120 for 20-foot containers.
The group said demand is rising from shippers of U.S. exports, but that “transpacific freight rates remain severely depressed in both directions and container lines find themselves under mounting pressure to improve revenues in order to meet customers' service requirements going forward.”
WTSA lines indicated that the February adjustments are part of a larger 2010 revenue program, which is to include quarterly increases throughout the year as market conditions dictate.
'Carriers face a very difficult business environment in 2010,' said WTSA Executive Administrator Brian M. Conrad. 'Westbound cargo is going to have to make a greater proportionate contribution to overall sailing costs, if lines are to keep pace with cargo handling, equipment management, documentation and other operational requirements.'
WTSA is a voluntary discussion forum for 10 major carriers, including APL, COSCO, Evergreen, Hanjin Shipping, Hapag-Lloyd, Hyundai Merchant Marine, 'K' Line, NYK, OOCL, and Yang Ming.