WTSA ups reefer rates US$1,500 per FEU from January on rising costs

THE Westbound Transpacific Stabilisation Agreement (WTSA) has announced general rate increases (GRIs) on refrigerated cargo moving from the US to Asia from January 1 on the grounds that reefer service is costing more to deliver.

The increase will be US$15,00 per FEU due to increase in freight rates in the trade affecting a market segment where equipment, operations and handling entail specialised expertise and high costs.

"Refrigerated service represents a significant commitment and investment by ocean carriers, to provide an alternative to far more expensive air freight shipment for fresh meats and produce, plasma and medicines, and other sensitive commodities," said WTSA executive administrator Brian Conrad.

"The underlying cost and value of the service is clear, and current rates seriously undermine roundtrip profitability. These actions are consistent with adjustments taken not only in the westbound transpacific market but in other trade lanes as well," he said.

WTSA members include Cosco, Evergreen, Hanjin, Hapag-Lloyd, Hyundai Merchant Marine (HMM), "K" Line, OOCL and Yang Ming.