The Trans-Atlantic Conference Agreement has announced unprecedented
increases in ocean rates as part of its business plan for 2000.
Westbound, the conference proposed to raise rates on Jan. 1 by $600 per
20-foot and $750 per 40-foot or 45-foot box, for cargoes moving to the Atlantic, Gulf or
Pacific coasts.
Eastbound, the planned increases from the Atlantic and Gulf Coasts, also
effective Jan. 1, are $160 per 20-foot container and $200 per 40-foot or 45-foot
container. From the Pacific Coast, rates will go up by $240 per 20-footer and $300 per
40-foot or 45-foot container.
The proposed rate increases represent a 50-percent jump in average westbound
rates and a 15-percent rise in eastbound rates, according to industry estimates.
David Jeffries, general manager of TACA, said that the scale of the rate
increases are "an indication of the need for rates to go back to a level viable to
carriers."
The transatlantic conference said the general level of freight rates is
insufficient to sustain reliable, frequent services and provide an adequate return on
capital to carriers.
The rate increases apply to tariff rates and will be a starting point for
re-negotiations of service contracts that expire on or after Jan. 1.
Most transatlantic service contracts expire on Dec. 31.
TACA said that transatlantic volumes have been poor eastbound and strong
westbound, but rates have been weak in both directions.
TACA said that it was announcing the rate increases well ahead of their Jan.
1 effective date.
TACA carriers are Atlantic Container Line, Hapag-Lloyd, Mediterranean
Shipping Co., Maersk Line, NYK, OOCL, P&O Nedlloyd and Sea-Land Service.
TACA ANNOUNCES UNPRECEDENTED RATE INCREASES
TACA ANNOUNCES UNPRECEDENTED RATE INCREASES
