The Transpacific Stabilization Agreement (TSA) is recommending the implementation of another general rate increase (GRI) on the Asia-U.S. trade lane in August, saying this comes after it noted sustained third-quarter cargo demand across major commodity segments.
It proposes a GRI from all Asia origins to all U.S. destinations of at least US$600 per 40-foot container (FEU).
The increase is to take effect August 1, 2014, TSA said in an emailed statement.
The planned 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,” it added.
Plans to implement an August 1 GRI were announced on July 7, with the amount still to be determined.
“Cost-cutting has been at the heart of carrier strategies in recent years, but lines also recognize the potential implications over time in areas such as schedule reliability and equipment availability,” said TSA executive administrator Brian Conrad.
“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,” he continued. “Given current rate levels, TSA members believe that $600 per FEU is the minimum needed to meet those objectives.”
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: cseeman
