WTSA Lines Recommend Seasonal Rate Actions on Proteins, Hides

WTSA Lines Recommend Seasonal Rate Actions on Proteins, Hides

Oakland, CA / May 8, 2012 – Container lines operating in the U.S.-Asia have proposed a set of non-binding guideline increases for freight rates covering frozen and chilled beef, pork and poultry, as well as animal hides, to coincide with upcoming contract renewals for those cargoes.

Effective July 1, 2012, member lines in the Westbound Transpacific Stabilization Agreement (WTSA) have recommended increases to existing rates of US$300 per 40-foot container (FEU) from the U.S. West Coast, and $400 per FEU for intermodal and U.S. East Coast all-water shipments, with proportionate increases for other equipment sizes. Rates for hides are to be increased by $100 per container.

WTSA executive administrator Brian M. Conrad noted that shipments of so-called protein cargoes, and of hides, typically move under 12-month contracts that run from July 1 through June 30. As a result they have not been covered under previously announced general rate increases for 2012. Conrad added that demand remains strong in Asia for U.S. exports of frozen and chilled meat, and that different trade lanes continue to compete for a limited supply of refrigerated equipment in circulation, particularly temperature-controlled container for carrying chilled commodities.

WTSA is a voluntary discussion and research forum of 10 major ocean and intermodal container shipping lines serving the trade from ports and inland points in the U.S. to destinations throughout Asia. More information about WTSA can be found at www.wtsacarriers.org.

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