TACA ANNOUNCES WESTBOUND RATE INCREASES

TACA ANNOUNCES WESTBOUND RATE INCREASES    The Trans-Atlantic Conference Agreement carriers are planning to raise westbound rates on Sept. 1, following an increase in the volume of U.S. imports from northern Europe.
   TACA’s westbound ocean tariff rates will go up by $320 per 20-foot container and $400 per 40-foot or 45-foot box, effective Sept. 1.
   The rate increase will be the third this year, following rate rises on Jan. 1 and April 1 introduced by the conference.
   As usual, rates for existing service contracts between shippers and a given TACA carrier are not affected directly by the conference rate increases, as they will be re-negotiated individually when the individual contracts expire.
   The transatlantic conference said that the increases are “part    of the continuing need to restore the viability of rate levels relative to the services    offered.”
   TACA carriers expect a shortage of capacity in the second half of the year, following the continuing surge in the westbound trade.
   The conference said that its members would not implement further increases in tariff ocean rates before March 2001.
   Eastbound ocean rates from the U.S. to Europe remain unchanged.
   However, TACA said that its currency adjustment factor under the eastbound and westbound tariffs will change from minus two percent to minus five percent, effective July 1, 2000.
   The conference’s bunker adjustment factor will change on July 1, when it will be set at $38 per 20-foot container for shipments to and from U.S. Atlantic and Gulf coast ports and $76 for U.S. Pacific coast shipments.
   For 40-foot and 45-foot containers, the bunker charge will be $57 per container for the Atlantic and Gulf coasts and $114 for the West coast.
   The carriers of the TACA conference are Atlantic Container Line, Hapag-Lloyd, Mediterranean Shipping Co., Maersk Sealand, NYK, OOCL and P&O Nedlloyd.