WTSA RECOMMENDS WESTBOUND FUEL CHARGE HIKE

    The Westbound Transpacific Stabilization Agreement has recommended to its members an increase in fuel adjustment factors, effective Oct. 1.
    According to the fuel surcharge calculation formula originally used by the now defunct Transpacific Westbound Rate Agreement, the westbound bunker charge can be increased on Oct. 1 from $20 to $40 per FEU.
    The calculations are made available quarterly by the WTSA to its carrier members, who make adjustments on a voluntary basis. Unlike conferences, discussion agreements such as the WTSA have no authority to make binding decisions on rates and surcharges.
    "Tariff cargo and cargo under contracts without all-in rates will likely see the fuel adjustment factor increased," a spokesman for the transpacific agreement said. "That will be almost entirely westbound."
    However, the increase in bunker surcharges won’t apply to most shipments. Much of the transpacific cargo in both directions moves under contracts with pre-negotiated all-in rates locked in for the life of those contracts.
    Most major transpacific carriers belong to the WTSA.