Anticipating an earlier than usual peak season, member lines in the Transpacific Stabilization Agreement (TSA) have announced a peak season surcharge (PSS) in June on top of a general rate increase (GRI) this month.
A TSA official statement released April 30 said a PSS of US$400 per 40-foot-equivalent unit (FEU) for all shipments will take effect June 15, 2014.
“Trans-Pacific container lines continue to experience a surge in eastbound bookings that began in January and is expected to continue into the second half of 2014, with vessel utilization in the mid-90% range via the West Coast and in the high-90% to full range to the East and Gulf Coasts,” explained TSA.
Earlier, TSA also recommended a GRI of $300 per FEU to the West Coast and $400 per FEU to all other U.S. destinations effective May 15 “to further help offset rate erosion seen in recent months.”
Both PSS and GRI, TSA said, are separate from the group’s 2014-15 rate and cost recovery program for service contracts that are now being negotiated and come up for renewal on May 1.
“Carriers continue to play catch-up on rates, which have been effectively stagnant since 2011,” said TSA executive administrator Brian Conrad. “Modest revenue gains from recent GRIs will not be adequate to pay for upgraded services to meet likely demand surges in the coming months.”
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 Transport, and Zim Integrated Shipping Services.
Photo: Greg Goebel
