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TSA lines push for general rate hikes between now and August
CONTAINER lines participating in the Transpacific Stabilisation Agreement (TSA) are moving ahead with the second phase of their revenue recovery plan after a rates rally.
The announcement also comes amid reassurances that cargo will continue to move through US west coast ports despite a feared protracted truckers' strike at the port complex of Los Angeles and Long Beach, and dockworker contract talks dragging on.
On July 15, TSA lines will implement a previously announced second-stage US$200 per FEU, general rate increase (GRI) and peak season surcharge (PSS) for cargo moving to Pacific southwest ports in California.
The increase follows a similar rate hike introduced on July 1.
While the revenue increase to the west coast was split into two stages, TSA shipping lines applied a full $400 per (FEU) on July for cargo moving to the Pacific northwest, US east and Gulf Coasts, and via intermodal to inland US points.
In addition, given the current unsustainable freight rate levels overall and the likelihood of continued strong demand through August, TSA is recommending a further GRI on August 1, a statement said.
"With the overall uncertainty already seen in the eastbound freight market, the central issue for shippers and carriers alike is maintaining service and schedule reliability," explained TSA executive administrator Brian Conrad.
"All partners in the supply chain need to be able to respond quickly and cover contingencies in the event of cargo surges or bottlenecks. And they need to know that their costs are covered in the process."
Mr Conrad said TSA members are pleased to hear that both sides in the west coast longshore labour negotiations are committed to avoiding cargo disruptions in the wake of the July 1 contract renewal deadline passing.
"We respect the need for confidentiality in the negotiations, but it makes the kind of reassurances we have received all the more important to maintaining confidence in the market," he added.
The announcement also comes amid reassurances that cargo will continue to move through US west coast ports despite a feared protracted truckers' strike at the port complex of Los Angeles and Long Beach, and dockworker contract talks dragging on.
On July 15, TSA lines will implement a previously announced second-stage US$200 per FEU, general rate increase (GRI) and peak season surcharge (PSS) for cargo moving to Pacific southwest ports in California.
The increase follows a similar rate hike introduced on July 1.
While the revenue increase to the west coast was split into two stages, TSA shipping lines applied a full $400 per (FEU) on July for cargo moving to the Pacific northwest, US east and Gulf Coasts, and via intermodal to inland US points.
In addition, given the current unsustainable freight rate levels overall and the likelihood of continued strong demand through August, TSA is recommending a further GRI on August 1, a statement said.
"With the overall uncertainty already seen in the eastbound freight market, the central issue for shippers and carriers alike is maintaining service and schedule reliability," explained TSA executive administrator Brian Conrad.
"All partners in the supply chain need to be able to respond quickly and cover contingencies in the event of cargo surges or bottlenecks. And they need to know that their costs are covered in the process."
Mr Conrad said TSA members are pleased to hear that both sides in the west coast longshore labour negotiations are committed to avoiding cargo disruptions in the wake of the July 1 contract renewal deadline passing.
"We respect the need for confidentiality in the negotiations, but it makes the kind of reassurances we have received all the more important to maintaining confidence in the market," he added.
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