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U.S./Asia carriers raise equipment charges

U.S./Asia carriers raise equipment charges

   In an attempt to improve the turnaround of container equipment, shipping lines of the Westbound Transpacific Stabilization Agreement (WTSA) said they intend to increase origin equipment detention charges for containers delivered to U.S.-based customers for loading, effective Sept. 1.

   The WTSA's 13 member lines are recommending origin detention charges be increased from $44 to $65 per dry container, and from $50 to $100 per refrigerated container. Detention charges are invoiced by the carrier when equipment is kept by the shipper beyond the normal free time allotted under terms of the freight booking — typically from the time the container is delivered to the shipper’s premises or picked up at a specified location, until it is returned to the carrier’s control for shipment on to Asia.

   The carrier group said dry containers are in high demand in Asia, and refrigerated boxes are needed for the peak agricultural shipping season.

   The WTSA noted that nearly 2.5 container loads of dry cargo move across the Pacific from Asia for every one moving outbound from the United States, placing severe pressure on ocean carriers to position dry container equipment.

   “It is in everyone’s best interests — carriers and shippers alike — to keep the cargo and equipment moving at this time of year,” said Albert A. Pierce, executive director of the WTSA

   WTSA carriers are: APL, China Shipping, COSCO Container Lines, Evergreen, Hanjin Shipping, Hapag-Lloyd, Hyundai Merchant Marine, “K” Line, MOL, NYK Line, OOCL, P&O Nedlloyd and Yang Ming.