Home » Breaking News, Maritime » WTSA plans commodity rate increases in November

Member lines of the Westbound Transpacific Stabilization Agreement (WTSA) are set to impose rate hikes on November 1, 2011 based on specific kinds of commodities, saying freight rates on the U.S.-Asia trade lane have approached unsustainable levels in recent months.

WTSA said it made a comprehensive review of rates and adjusted them per commodity based on prevailing rate levels, competitive considerations, and overall market conditions. The rate adjustments have been posted on the WTSA website www.wtsacarriers.org.

“The listings show recommended rate adjustments by commodity and effective date; notice of postponement or modification of previously announced adjustments; minimum rates where applicable; and promotional or other rates fixed for a set time period, with expiry dates,” WTSA said.

To be affected by the November 1 rate hike are both dry and refrigerated cargo. Dry cargo include agricultural products, chemicals, clay, hay, hides, lumber, metal and plastic scrap, onions, resins, wastepaper, wood pulp, Kraft Liner Board, and other dry cargo and freight-all-kinds cargo.

Rate-adjusted refrigerated cargo will include chilled apples, pears, citrus, and vegetables-all-kinds; frozen and chilled beef/pork; cherries; frozen fish, poultry, French fries, and vegetables; and melons, kiwis, watermelons, pomegranates, seafood, stone fruit, grapes, prunes, plums, and reefer.

Brian Conrad, WTSA executive adminstrator, said an attempt at scheduled increases last July met limited success, and rate levels have fallen since.

“We’re hoping that market fundamentals will be more supportive of rate improvement in the coming months as we move into the winter period when westbound volumes typically start to improve,” he said.

The 10-carrier WTSA is comprised of APL, Cosco, Evergreen, Hanjin, Hapag-Lloyd, Hyundai, “K” Line, NYK, OOCL, and Yang Ming.

 

Photo by A Guide

 

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