Container lines in the Transpacific Stabilization Agreement (TSA) are eyeing a general rate increase (GRI) effective mid-January 2015, saying this will enable them to “address rising costs and cover service contingencies in the Asia-U.S. trade lane.”
A guideline rate increase of US$600 per 40-foot container (FEU) effective January 15 has been adopted by the group for all origin and destination points.
The box lines will also reinstate a $400 per FEU peak season surcharge (PSS) in anticipation of a possible pre-Lunar New Year cargo surge.
TSA executive administrator Brian Conrad explained that the GRI is part of an ongoing effort by member-lines to reverse erosion brought about by short-term rates in the Asia-U.S. freight market. The PSS, he added, reflects sustained cargo demand growth heading into the Lunar New Year period when many Asian factories close for a week, producing surges in traffic immediately before and after.
“It is critical, after another year of only very slight net gains at best, that carriers shore up rate levels and hold the line on rising costs as we head into a new contracting season and ramp up to meet Lunar New Year seasonal demand,” Conrad said.
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. These carriers include APL, China Shipping Container Lines, CMA-CGM, COSCO Container Lines, Evergreen Line, Hanjin Shipping Co., Hapag-Lloyd, Hyundai Merchant Marine, Kawasaki Kisen Kaisha, Maersk Line, Mediterranean Shipping Co., Nippon Yusen Kaisha, Orient Overseas Container Line, Yangming Marine Transport, and Zim Integrated Shipping Services.
Photo: U.S. Coast Guard
