(The following is a reformatted version of a press release
issued by The Transpacific Stabilization Agreement
and received via electronic mail. The release was confirmed by
TSA MOVES TO PRESERVE RATE GAINS AS CONTRACT TALKS BEGIN
Lines recommend April 1 GRI, seeking meaningful increases over
2012-13 contract rates.
Oakland, CA / February 4, 2012 - Container shipping lines
operating from Asia to the U.S. want to shore up rate gains made
to date as they look ahead to the post-Lunar New Year shipping
period and as 2013-14 service contract negotiations intensify.
Member lines in the Transpacific Stabilization Agreement (TSA)
are recommending an across-the-board general rate increase (GRI)
on all dry and refrigerated cargo, effective April 1, 2013, in
the amount of US$400 per 40-foot container (FEU) to the U.S.
West Coast and $600 per FEU to all other destinations. They say
freight rates remain below compensatory levels despite previous
adjustments, and want to ensure that 2013-14 contract rates
contain meaningful net increases relative to 2012 contract
“The week-long Lunar New Year factory closures in Asia tend to
pull forward spring shipments, especially among retail
customers,” explained TSA executive administrator Brian M.
Conrad. “This translates into slowing cargo demand after the
holidays, and is one of many such inflection points that can
erode revenue throughout the year. Carriers are committed to
keeping market rates stable over the next 6 to 8 weeks, as the
contracting season ramps up.”
Contract negotiations are expected to accelerate in the coming
weeks, and Conrad emphasized that while current market rates
have shown improvement, another year of longer term rates at
2012 contract levels - or with only minimal increases - is not
sustainable. “It is essential to carriers’ long-term viability
that new contracts include rates that are more closely aligned
with current market levels,” he said.
TSA is a research and discussion forum of major container
shipping lines serving the trade from Asia to ports and inland
points in the U.S. More information on TSA can be found at
TSA members include:
Kawasaki Kisen Kaisha, Ltd. (K Line)
China Shipping Container Lines
Mediterranean Shipping Co.
COSCO Container Lines, Ltd.
Nippon Yusen Kaisha (N.Y.K. Line)
Orient Overseas Container Line, Ltd.
Hanjin Shipping Co., Ltd.
Yangming Marine Transport Corp.
Zim Integrated Shipping Services
Hyundai Merchant Marine Co., Ltd.
Niels Erich T: 415.525.4520 Email: firstname.lastname@example.org
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