TIGHT supply and rising demand are expected to put upwards pressure on westbound freight rates for refrigerated containers transporting US beef, pork and poultry to Asia, according to the Transpacific Stabilisation Agreement.
A statement issued on behalf of TSA member shipping lines cited a number of factors behind the optimism that the rates will jump.
"Increased demand from a growing urban middle class in Asia is reopening markets for US exporters, at a time when refrigerated equipment has migrated to other trades and is more costly to purchase and lease," said the TSA statement.
Carriers of so-called "protein" cargo have been advised by the TSA to increase westbound rates by US$700 per FEU, effective July 1, as most rates for protein cargo are at their lowest in five years.
"We're seeing a perfect storm develop in the westbound transpacific refrigerated segment," said TSA-Westbound executive administrator Brian Conrad.
"On top of expected organic demand growth in Asia and normal competition for equipment from other seasonal cargoes such as summer fruits, a shortage of refrigerated rail cars in the US is driving inland intermodal demand for containers and generator sets.
"Premature scrapping of specialty refrigerated ships is drawing equipment to north-south trades, particularly Central and South America. Sustainable rates are critical to equipment availability in this environment."
The members of the TSA westbound section are APL, CSCL, CMA CGM, Cosco, Evergreen, Hanjin, Hapag-Lloyd, Hyundai Merchant Marine, "K" Line, Maersk, MSC, NYK, OOCL, Yang Ming Marine and Zim.
WORLD SHIPPING
10 May 2014 - 03:06
TSA carriers agree westbound reefer rates look ripe for a hike
TIGHT supply and rising demand are expected to put upwards pressure on westbound freight rates for refrigerated containers transporting US beef, pork and poultry to Asia, according to the Transpacific Stabilisation Agreement.
WORLD SHIPPING
10 May 2014 - 03:06
TSA carriers agree westbound reefer rates look ripe for a hike
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