Mike King, Special Correspondent | Apr 10, 2012 10:14AM EDT
Container shipping lines in the Westbound Transpacific Stabilization Agreement have announced further rate hikes for dry and reefer cargoes to boost revenues on U.S.–Asia lanes.
The WTSA is recommending a dry container rate boost of $50 per 40-foot container from the Pacific Southwest ports of Los Angeles, Long Beach and Oakland from May 15. From U.S. East and Gulf Coast ports and inland points and on all-water or intermodal services from Pacific Northwest ports, the WTSA is recommending a $100 per FEU increase, also from May 15.
For reefer cargoes, WTSA lines are recommending increases of $200 per FEU for French fries, frozen vegetables and miscellaneous refrigerated cargoes not covered under commodity-specific programs, for all origins and Asian destinations.
The rate increases follow a round of hikes for dry cargoes by the WTSA on April 1. WTSA executive administrator Brian M. Conrad said the successive rate adjustments were designed to restore rates to compensatory levels after a period of erosion.
He added that the diverse and often seasonal nature of westbound traffic made it necessary to adopt multiple increases for cargo moving under contract throughout the year.
The WTSA is a discussion agreement whose members have antitrust immunity to discuss and agree on voluntary rate guidelines. WTSA members are APL, Cosco, Evergreen, Hanjin, Hapag-Lloyd, Hyundai Merchant Marine, “K” Line, NYK, Orient Overseas Container Line and Yang Ming.
Contact Mike King at michael@borderline.eu.com.
