TSA announces US$400/FEU transpac general rate increase from April 1
THE 15 shipping lines of the Transpacific Stabilisation Agreement (TSA) have agreed on an April 1 general rate increase (GRI) of US$400 per FEU to the US west coast and $600 per FEU for all other destinations, said a statement from the group.
"Freight rates remain below compensatory levels despite previous adjustments, and TSA wants to ensure that 2013-14 contract rates contain meaningful net increases relative to 2012 contract levels," said the statement.
"The week-long Lunar New Year factory closures in Asia tend to pull forward spring shipments, especially among retail customers," explained TSA executive administrator Brian Conrad.
"This translates into slowing cargo demand after the holidays, and is one of many such inflection points that can erode revenue throughout the year. Carriers are committed to keeping market rates stable over the next six to eight weeks, as the contracting season ramps up," Mr Conrad said.
Contract negotiations are expected to accelerate in the coming weeks, and he emphasised that while current market rates have shown improvement, another year of longer term rates at 2012 contract levels - or with only minimal increases - is not sustainable.
"It is essential to carriers' long-term viability that new contracts include rates that are more closely aligned with current market levels," Mr Conrad said.
TSA is a research and discussion forum of major container shipping lines serving the trade from Asia to ports and inland points in the US. More information on TSA can be found at www.tsacarriers.org .
TSA members include APL, "K" Line, China Shipping Container Lines, Maersk, CMA-CGM, Mediterranean Shipping Co, Cosco, NYK, Evergreen, OOCL, Hanjin, Yangming, Hapag-Lloyd, Zim and Hyundai.
THE 15 shipping lines of the Transpacific Stabilisation Agreement (TSA) have agreed on an April 1 general rate increase (GRI) of US$400 per FEU to the US west coast and $600 per FEU for all other destinations, said a statement from the group.
"Freight rates remain below compensatory levels despite previous adjustments, and TSA wants to ensure that 2013-14 contract rates contain meaningful net increases relative to 2012 contract levels," said the statement.
"The week-long Lunar New Year factory closures in Asia tend to pull forward spring shipments, especially among retail customers," explained TSA executive administrator Brian Conrad.
"This translates into slowing cargo demand after the holidays, and is one of many such inflection points that can erode revenue throughout the year. Carriers are committed to keeping market rates stable over the next six to eight weeks, as the contracting season ramps up," Mr Conrad said.
Contract negotiations are expected to accelerate in the coming weeks, and he emphasised that while current market rates have shown improvement, another year of longer term rates at 2012 contract levels - or with only minimal increases - is not sustainable.
"It is essential to carriers' long-term viability that new contracts include rates that are more closely aligned with current market levels," Mr Conrad said.
TSA is a research and discussion forum of major container shipping lines serving the trade from Asia to ports and inland points in the US. More information on TSA can be found at www.tsacarriers.org .
TSA members include APL, "K" Line, China Shipping Container Lines, Maersk, CMA-CGM, Mediterranean Shipping Co, Cosco, NYK, Evergreen, OOCL, Hanjin, Yangming, Hapag-Lloyd, Zim and Hyundai.