Wednesday, July 16, 2014

TRANSPACIFIC CONTAINER RATE INCREASE

From American Shipper--

Transpacific carriers plan August FEU rate hike
Wednesday, July 16, 2014
The Transpacific Stabilization Agreement said its 15 members, which control more than 90 percent of the container traffic between the Far East and the United States, are recommending a general rate increase from all Asia origins to all U.S. destinations of at least $600 per 40-foot container, effective August 1.
The increase comes on top of a $400-per-FEU increase the group recommended carriers implement this month.
"The intended GRI is part of an ongoing revenue-improvement program aimed at enabling carrier reinvestment in the transpacific trade lane to ensure adequate service levels as demand increases," TSA said.
TSA Executive Administrator Brian Conrad explained that carriers have been focused on cutting costs in recent years, "but lines also recognize the potential implications over time in areas such as schedule reliability and equipment availability."
He continued, “It is essential for the trade to have a rate structure that encourages reinvestment, attracts equipment back into the market, covers rising inland transport and cargo handling costs, and enables carriers to broaden their service offerings. Given current rate levels, TSA members believe that $600 per FEU is the minimum needed to meet those objectives.”
TSA members include APL, China Shipping, CMA CGM, COSCO, Evergreen, Hanjin, Hapag Lloyd, Hyundai Merchant Marine, "K" Line, Maersk, MSC, NYK, OOCL, Yang Ming, and Zim.