Hyundai raises Kansas City export shipment rates

Hyundai raises Kansas City export shipment rates    Hyundai Merchant Marine said Monday it is raising rates on intermodal shipments from Kansas City to Asia by $500 per TEU beginning Sept. 1.
   The carrier said the hike is necessary due to “offset the expense of repositioning empty containers into Kansas City to meet growing demand.'
   In a note to customers, Hyundai said it is raising rates on exports to Asia in conjunction with other members of the Westbound Transpacific Stabilization Agreement, but that the Kansas City situation necessitated specific corrective rate action. The general rate increase for other inland point intermodal moves ($160 per TEU and $200 per FEU) does not apply to Kansas City shipments.
   'Hyundai has been active in pursuing cost cutting measures this year but, there is only so much savings that can be realized in such a capital-intense business,' said David Kalata, vice president of transpacific westbound pricing for Hyundai. 'If we are operating vessels, we must pay port costs, bunker expenses, railroad invoices, dray bills, etc.'
      Kalata said he believes HMM customers would rather pay a little more for quality service than watch the carrier cut services.
   'Today's service levels are not sustainable at today's rates,' he said.