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TSA-Westbound plans series of rate hike from October to December
CARRIERS of the Transpacific Stabilisation Agreement (TSA) Westbound have planned phased, across-the-board increases in freight rates, beginning October 1, said the press release.
"Carriers see a bottom in the market, expect pent-up Q4 demand ahead, as rates hover at or near below-cost levels," it said.
TSA-Westbound lines say they expect to follow with similar, gradual increases in November and December with higher increases for the most depressed rates.
"US-Asia freight rates have fallen to historically low levels since the beginning of 2015 due to a strong dollar and unusually weak emerging market demand," said TSA-Westbound executive administrator Brian Conrad.
"Current westbound rate levels in many cases do not fully cover costs. At best, they make only a nominal contribution to a round-trip sailing, and barely compete for space aboard ship with empty repositioned containers needed in Asia.
"Worse, at a time when westbound equipment is already in short supply, depressed rates encourage migration of containers to other trades," said Mr Conrad.
TSA members are: APL, "K" Line, CSCL, Maersk Line, CMA CGM, MSC, Cosco, NYK, Evergreen Line, OOCL, Hanjin Shipping, Yangming Marine Transport, Hapag-Lloyd, Zim and HMM.
"Carriers see a bottom in the market, expect pent-up Q4 demand ahead, as rates hover at or near below-cost levels," it said.
TSA-Westbound lines say they expect to follow with similar, gradual increases in November and December with higher increases for the most depressed rates.
"US-Asia freight rates have fallen to historically low levels since the beginning of 2015 due to a strong dollar and unusually weak emerging market demand," said TSA-Westbound executive administrator Brian Conrad.
"Current westbound rate levels in many cases do not fully cover costs. At best, they make only a nominal contribution to a round-trip sailing, and barely compete for space aboard ship with empty repositioned containers needed in Asia.
"Worse, at a time when westbound equipment is already in short supply, depressed rates encourage migration of containers to other trades," said Mr Conrad.
TSA members are: APL, "K" Line, CSCL, Maersk Line, CMA CGM, MSC, Cosco, NYK, Evergreen Line, OOCL, Hanjin Shipping, Yangming Marine Transport, Hapag-Lloyd, Zim and HMM.
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