Transpacific Stablisation Agreement (TSA) carriers hope of a good shipping season though shippers must brace themselves to pay more as the 2013 annual contract talks get underway.
Guns of April: Shippers told to brace themselves for higher ratesAPRIL rate hikes and forward bookings give Transpacific Stablisation Agreement (TSA) carriers hope of a good shipping season though shippers must brace themselves to pay more as the 2013 annual contract talks get underway.
"It is critical for shippers to understand that rates which reflect little or no increase over 2012 levels are not sustainable. Carriers are looking to ensure that new contracts include rates that reflect a meaningful increase above 2012 levels," said TSA administrator Brian Conrad.
Carriers say strengthening demand and a reversal of rate erosion seen since the end of 2012 are critical to ongoing negotiations with shippers toward signing the 12-month contracts under which more than 90 per cent of containerised cargo from Asia to the US moves, the TSA said.
Most contracts come up for renewal in May," said Mr Conrad, adding that the April 1 increases are intended to restore current market rates closer to sustainable levels, then pave the way for further hikes in contract prices.
Mr Conrad also said the current trend of modest but steady growth is expected to continue in 2013, with improved vessel utilisation already apparent throughout April, following the traditional post-Chinese New Year lull.
"Coming off a period of close to zero cargo growth in 2012, the outlook is definitely more positive at this point," he said.
