Transpacific Stabilisation Agreement raises rates US$400/FEU April 15
FIFTEEN member carriers of Transpacific Stabilisation Agreement (TSA) have announced they will increase transpacific rates by US$400 per FEU from April 15. Friday, 16.Mar.2012, 15:59 (GMT+3)
FIFTEEN member carriers of Transpacific Stabilisation Agreement (TSA) have announced they will increase transpacific rates by US$400 per FEU from April 15.
The proposed increase comes just ahead of the previously announced May 1 increases of $500 per FEU for US west coast cargo and $700 per FEU for all other shipments.
As most annual contracts in transpacific trades will need to be renewed in May, the TSA said in a statement: "The recommendation reaffirms the resolve of transpacific container lines to improve Asia-US market rates as they move forward in a new round of contract talks with customers."
To recover increasing fuel costs, the TSA member carriers said they plan to impose a peak season surcharge later in the year "based on a review of anticipated market conditions moving into the summer and fall months."
"Carriers operating in the Pacific are at a critical juncture," explained TSA executive administrator Brian Conrad. "Once again, as in 2009, we are back to a situation in which nearly all major carriers in the trade are moving cargo at a loss. For any carrier rate or cost recovery effort to be meaningful in 2012-13, it must reflect an actual increase from rates in effect at the beginning of the previous year, and it cannot extend promotional short-term rates in select trade segments to all commodities and all routes for 12 months."
Mr Conrad said the issue of supply and demand should not be the "only or even the primary consideration in carrier pricing".
Instead, he said the focus should be "on sustained carrier viability and service quality in a major, recovering trade lane with complex and sophisticated service needs."
TSA member carriers include APL, CSCL, CMA CGM, Cosco, Evergreen, Hanjin, Hapag-Lloyd, Hyundai Merchant Marine (HMM), "K" Line, Maersk, MSC, NYK, OOCL, Yang Ming and Zim.