(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 the sender.) 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 levels. “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 www.tsacarriers.org. TSA members include: APL Ltd. Kawasaki Kisen Kaisha, Ltd. (K Line) China Shipping Container Lines Maersk Line CMA-CGM Mediterranean Shipping Co. COSCO Container Lines, Ltd. Nippon Yusen Kaisha (N.Y.K. Line) Evergreen Line Orient Overseas Container Line, Ltd. Hanjin Shipping Co., Ltd. Yangming Marine Transport Corp. Hapag-Lloyd AG Zim Integrated Shipping Services Hyundai Merchant Marine Co., Ltd. Contact: Niels Erich T: 415.525.4520 Email: email@example.com (bjh) NY #<873920.6606188.8.131.52.0.76>#
TSA MOVES TO PRESERVE RATE GAINS AS CONTRACT TALKS BEGIN
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