WTSA raises export rates to Asia
Member container lines in the Westbound Transpacific Stabilization Agreement said Thursday they are raising rates on exports from the United States to Asia, beginning Sept.
The move follows an announcement this week from WTSA member Evergreen Line that it was raising export rates to Asia on a host of commodities.
In a statement the lines said the general rate increase is an attempt to 'halt the steady erosion of rates in the U.S./Asia freight market in recent months.' Unlike the Evergreen hikes, the WTSA-wide rate increases apply to all cargoes to all Asian destinations.
The increases are:
' $150 per 40-foot and $120 per 20-foot equivalent unit from the U.S. West Coast
' $200 per FEU and $160 per TEU for intermodal moves or all-water shipment via the U.S. East and Gulf coasts.
For reefer cargo, the increases are:
' $250 per FEU and $200 per TEU from the West Coast.
' $300 per FEU and $240 per TEU for intermodal and for East and Gulf coasts shipments.
The rates are also applicable to commodities exempt from tariff filing.
'We've seen cargo demand fall off steadily from the highs of last year, pulling rates down with them, from already low levels,' said Brian Conrad, WTSA executive administrator. 'Lines have made targeted efforts to raise specific rates in the past two years, but most of their energies during 2008 focused on fuel cost recovery. Now rates have eroded to a point where serious action is needed to address basic service requirements.'
WTSA member carriers are APL, COSCO, Evergreen, Hanjin Shipping, Hapag-Lloyd, Hyundai Merchant Marine, NYK Line, OOCL and Yang Ming Line.
