(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.)
FOR IMMEDIATE RELEASE
TSA LINES RECOMMEND MINIMUM U.S.-ASIA RATE INCREASE BY OCTOBER 1
Carriers point to likely market upturn in Q4, cite urgent need
to reverse rate erosion throughout 2013.
Oakland, CA / August 28, 2013 - After months of uneven demand
and gradually eroding freight rates in the U.S.-Asia trade lane,
container shipping lines say it is time to begin reversing the
Member carriers in the Transpacific Stabilization Agreement
(TSA) Westbound section have announced plans to raise freight
rates, for all commodities and from all U.S. origin points, by
at least US$100 per 40-foot container (FEU) by no later than
October 1, 2013. A number of TSA-Westbound lines have already
filed individual increases across the board or in in key market
segments, to take effect during September, and those will go
forward as scheduled; other members are looking to an October 1
TSA Westbound executive administrator Brian M. Conrad said there
is an urgent need to begin rate restoration efforts in
anticipation of fourth quarter cargo growth. “Rates have drifted
down even more than usual during the typical summer slack
period, to unsustainable levels,” Conrad explained. “Not only
are we headed into the busiest time of year for the trade, but
we are also seeing signs in the market that U.S. exports to Asia
are poised for recovery in coming months.”
Conrad stressed that lines view the $100 per FEU general rate
increase (GRI) amount as a minimum, given current rate levels.
“Anytime the lines undertake a GRI, they are mindful of the
price sensitivity for many westbound cargoes and the need for an
incremental approach in restoring rates,” he said. “At the same
time we need to be clear that the recommended GRI will not, by
itself, raise rates to levels that make an adequate contribution
to round trip revenue.”
While the GRI is voluntary and will be implemented by lines
individually according to their specific needs at this time,
Conrad said transpacific carriers remain under considerable
financial pressure in the current environment and will be
looking at further opportunities for revenue recovery in late
2013 and early 2014.
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 about TSA Westbound is at
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
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