Container shipping lines in the Transpacific Stabilization Agreement (TSA) have moved the effective date of a scheduled June 15, 2014 peak season surcharge (PSS) of US$400 per 40-foot container (FEU) to July 1, to coincide with the expiration of various market rates on June 30.
The objective is to raise overall revenue levels by an average $400 per FEU at that time for Pacific Northwest and U.S. East Coast ports and gateways. For Pacific Southwest ports in California, the objective is to raise overall revenue levels by $200 per FEU on July 1 and by a further $200 per FEU no later than July 15.
Ocean carriers are committed to improving revenues amid strong year-on-year cargo gains through June, and forward bookings that show the trend continuing into the third quarter.
Lines anticipate healthy shipments of summer back-to-school retail merchandise, followed by a brief lull before peak season demand picks up.
“Our members are seeing steady vessel utilization ranging from mid-90% to full despite new capacity coming into the transpacific market,” explained TSA executive administrator Brian Conrad. “This is a pivotal point for them in planning ahead for the peak months to provide space and equipment availability, schedule reliability and service differentiation. After facing serious operating losses across the trade in recent years, carriers’ strategic choices will be decided in large part by available revenue.”
TSA is a research and discussion forum of major container shipping lines serving the trade from Asia to ports and inland points in the US.
TSA members include APL, CMA-CGM, COSCO Container Lines, China Shipping Container Lines, Evergreen Line, Hanjin Shipping, Hapag-Lloyd, Hyundai Merchant Marine, K Line, Maersk Line, Mediterranean Shipping, NYK Line, Orient Overseas Container Line, Yangming Marine Transport Corp., and Zim Integrated Shipping Services.
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