THE 15 member container lines of the Transpacific Stabilisation Agreement (TSA), a quasi conference, have agreed on a range of big rate increases and contract minimum prices to be exacted this year.
The TSA also reaffirmed support for its previously announced US$600 per FEU across-the-board rate increase from February 9.
TSA also "indicated" that that increase would be followed by another $600 per FEU hike from March 9, with an April rise likely to follow.
Member lines have also settled on augmentations of previously announced contract rates to reflect increases of $300 per FEU for the US east/Gulf coast minimum, and $200 per FEU to the Chicago container yard as an intermodal minimum.
And from May 1, rates to the US west coast from north Asia, will increase US$2,000 per FEU and by $2,150 per FEU from southeast Asia, TSA said.
To the US east and Gulf coasts, rates will rise $3,800 per FEU from north Asia $3,950 per FEU from southeast Asia.
To continental inland points rates to the Chicago container yard, rates will rise $4,100 from north Asia and $4,250 from southeast Asia.
Rate increases reflect rising costs and demand levels, said the TSA statement. Intermodal rates to all other inland points destinations will be set at a minimum $1,000 per FEU above the old May 1, 2014 all-in levels.
All minimum rates are based on a second quarter 2015 bunker charge level, to be published in late February.
"TSA carriers report consistently full sailings into the Pacific Northwest and via all-water Panama and Suez routes to the US east and Gulf coasts, as well as 95 per cent utilisation or better through California ports hardest hit by congestion.
TSA then cited the US Commerce Department’s Bureau of Economic Analysis reports of consumer spending rising 3.5 per cent in 2014 on goods overall, and 6.7 per cent on durable goods; and that retail sales rose 3.2 per cent in 2014 and 4.1 per cent year on year in the fourth quarter.
"Home furnishings, building and garden supplies, electronics, sporting goods, health and personal care ?all reported four to seven per cent sales gans," said the statement.
This has encouraged member lines to move ahead with revenue improvement measures which will help support continued carrier service investments, said the TSA statement.
"The transpacific freight market is maturing," suggested TSA executive administrator Brian Conrad. "We should not continue to measure it against double-digit annual growth seen a decade ago, but rather in the context of a healthy, steadily improving trade."
Excess vessel supply reported globally is often overstated in the transpacific because it does not take into account infrastructure and other operational constraints, he said.
"The primary imbalance in the transpacific is not so much one of supply versus demand," said Mr Conrad, "but rather one of costs versus revenue."
Container lines are forecasting significant increases in shoreside and inland rail, truck and equipment management costs during 2015.
TSA members include APL, "K" Line, China Shipping, CMA-CGM, Maersk, Marine Transport Limited, MSC, Cosco, NYK, Evergreen Line, OOCL, Hapag-Lloyd, Hanjin, Yang Ming and Zim.
WORLD SHIPPING
05 February 2015 - 21:33
TSA's 15 member lines to impose series of major rate hikes
THE 15 member container lines of the Transpacific Stabilisation Agreement (TSA), a quasi conference, have agreed on a range of big rate increases and contract minimum prices to be exacted this year.
WORLD SHIPPING
05 February 2015 - 21:33
TSA's 15 member lines to impose series of major rate hikes
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