Transpacific shipping lines reaffirm rate increases

Transpacific shipping lines reaffirm rate increases    Containerline members of the Transpacific Stabilization Agreement have reaffirmed their plans to implement rate increases later this year, amid promising market trends.
   “Cargo demand will keep pace with effective capacity and produce continued tight space in the coming year. Given that scenario, along with dramatically rising operating costs and rate levels still recovering from steep declines in 2001-02, TSA carriers have reaffirmed their support for planned May 1, eastbound transpacific rate increases of $450 per 40-foot container to U.S. West Coast destinations, and $600 per 40-foot container to U.S. East Coast and inland point locations,” the TSA said in a statement.
   TSA shipping lines have also scheduled a $400 per 40-foot container peak season surcharge for 2004 on shipments moving between June 15 and October 31.
   The carrier discussion agreement noted “spring freight bookings (are) on the rise and positive economic signals coming from both Asia and the U.S. for the first time in many months,” pointing to “another year of strong Asia-U.S. trade growth.”
   “The removal of apparel quotas at the end of 2004 is expected to produce a high volume of shipments early in 2004 under the current system, and a shift in sourcing to Asia from other countries as quotas are lifted. As a result, TSA carriers now forecast a 10 percent to 12 percent average eastbound transpacific cargo growth during 2004-2005,” the TSA said.
   TSA member lines are American President Lines, CMA-CGM, COSCO Container Lines, Evergreen Marine, Hanjin Shipping, Hapag Lloyd, Hyundai Merchant Marine, Kawasaki Kisen Kaisha, Maersk Sealand, Mitsui O.S.K. Lines, Nippon Yusen Kaisha, Orient Overseas Container Line, P&O Nedlloyd, and Yangming Marine.