Home » Breaking News, Maritime, Press Releases » US-Asia lines recommend Oct 1 dry cargo rate hike

Oakland, CA– Container shipping lines in the Westbound Transpacific Stabilization Agreement (WTSA) have announced a recommended general rate increase (GRI) that will apply to all dry commodities and to all origins and destinations, effective October 1, 2012. The guideline GRI will be in the amount of US$200 per 40-foot container (FEU) and $160 per 20-foot container (TEU).

WTSA said westbound revenues have declined considerably from levels seen earlier in the year, as demand in Asia has slowed and carriers have made concessions in their pricing to accommodate customers during the difficult period.

WTSA reported first-quarter 2012 cargo volume of 800,000 FEUs vs. 774,200 FEU for the same period in 2011, a 3.5% increase year-on-year. More recently, carrier bookings indicate that those volume gains have since narrowed over the summer, and freight rates have followed.

“The problem is that moving rates for many commodities have slipped to levels that no longer reflect the value of the service or make an adequate contribution to the round trip voyage,” said WTSA executive administrator Brian M. Conrad. “Carriers anticipate an upturn in the typically busy months ahead and feel a need to make up lost ground in terms of revenue.”

WTSA 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.

Container Cargo Freight Ship” by vichie81
Free image courtesy of FreeDigitalPhotos.net

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