TACA raising eastbound rates

TACA raising eastbound rates

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Trans-Atlantic Conference Agreement members — Atlantic Container Line, Maersk Line, Mediterranean Shipping Co., NYK Line, and OOCL — will seek general rate increase rates in February for eastbound cargo to cover rising costs.
   Effective Feb. 1, the conference has recommended rate increases for eastbound cargo moving in dry van and temperature controlled containers through U.S. Atlantic, Gulf and Pacific Coast ports of $400 per TEU and $500 per 40- or 45-foot container.
   Cargo moving on a weight or measure basis will increase $25.
   TACA implemented similar eastbound increases on Oct. 1.
   The conference said that increasing eastbound volume is creating severe demands on vessel space and, in particular, on container availability for the growing U.S. exports.
   “This rising demand for space, as evidenced by the strength of eastbound cargo volumes and the high level of forward bookings, coupled with the additional costs of repositioning containers, is expected to increase substantially into 2008,” the conference said in the statement.
   “In this respect, the TACA rate restoration measures published in October 2007 have provided insufficient revenues to cover the rising cost pressures encountered by these demands. Parties conclude that, under such conditions, services will become unsustainable at current levels and that further action is necessary in order to maintain the quality of services required by the trade.”
   Earlier this week TACA announced that is temporarily suspending its bunker adjustment factor and keeping the surcharge at a lower level through Feb. 15, essentially because it doesn’t believe shippers will stand for another rise. Other non-TACA carriers such as Hapag-Lloyd and CMA CGM are understood also to be keeping the BAF charges at the lower level so not to lose customers.