Member-container shipping lines in the Transpacific Stabilization Agreement (TSA) are proposing an across-the board general rate increase (GRI) of at least US$600 per 40-foot container (FEU) to all destinations effective September 1.
Carriers had filed increases in their individual tariffs in late July and subsequently began notifying customers directly.
TSA said the planned GRI follows strong cargo demand and high vessel utilization levels in recent months, which forward bookings suggest will continue through September.
With equipment, inland transport, and other cargo handling costs rising steadily, carriers see higher baseline rates going into 2015 as essential to maintaining adequate service levels over time.
“Lines have made modest revenue gains to date this year, but they continue to struggle in terms of returning to profitability,” said TSA executive administrator Brian Conrad. “In most route segments they are operating at or near full capacity with little room for error in managing assets, so this increase is needed as a cushion to cover costs and assure service choice and reliability.”
TSA is a research and discussion forum of major container shipping lines serving the trade from Asia to ports and inland points in the U.S. Its members include APL, China Shipping Container Lines, CMA-CGM, Cosco Container Lines, Evergreen Line, Hanjin Shipping, Hapag-Lloyd, Hyundai Merchant Marine, Kawasaki Kisen Kaisha, Maersk Line, Mediterranean Shipping Co., Nippon Yusen Kaisha, Orient Overseas Container Line, Yangming Marine, and Zim Integrated Shipping Services.
Photo: chooyutshing
