News Content
TSA to levy US$100 - $200/FEU westbound hike ex USWC, USEC-Gulf Feb 1
MEMBER lines of the Transpacific Stabilisation Agreement (TSA) have agreed to a US$100 per FEU rate hike for westbound cargo moving via the US west coast and $200 per FEU for cargo moving via the US east and Gulf Coasts effective February 1.
"Declining Asian demand, made worse by a strong dollar, has made shipping dry cargo less attractive to carriers than repositioning empties," according to the TSA statement.
But the general rate increase will not apply to refrigerated shipments, which are rated separately, TSA said.
TSA executive administrator Brian Conrad noted that westbound cargo volumes are likely to shrink. Orders have slowed because sourcing has shifted to countries with more favourable exchange rates.
"The market slowdown has been unprecedented, due primarily to weakening demand," Mr Conrad said.
"Lines don't envision sustained low rates growing the market, and see little benefit in growing market share at current rate levels," he said.
Instead, Mr Conrad said carriers sought generate sufficient revenue to maintain service levels and make a reasonable contribution to the round-trip sailing.
Member lines of the TSA are: APL, "K" Line, CSCL, Maersk Line, CMA-CGM, MSC, COSCO, NYK, Evergreen Line, OOCL, Hanjin Shipping, Yangming, Hapag-Lloyd, Zim and Hyundai Merchant Marine.
"Declining Asian demand, made worse by a strong dollar, has made shipping dry cargo less attractive to carriers than repositioning empties," according to the TSA statement.
But the general rate increase will not apply to refrigerated shipments, which are rated separately, TSA said.
TSA executive administrator Brian Conrad noted that westbound cargo volumes are likely to shrink. Orders have slowed because sourcing has shifted to countries with more favourable exchange rates.
"The market slowdown has been unprecedented, due primarily to weakening demand," Mr Conrad said.
"Lines don't envision sustained low rates growing the market, and see little benefit in growing market share at current rate levels," he said.
Instead, Mr Conrad said carriers sought generate sufficient revenue to maintain service levels and make a reasonable contribution to the round-trip sailing.
Member lines of the TSA are: APL, "K" Line, CSCL, Maersk Line, CMA-CGM, MSC, COSCO, NYK, Evergreen Line, OOCL, Hanjin Shipping, Yangming, Hapag-Lloyd, Zim and Hyundai Merchant Marine.
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
