ASIA-U.S. CONTAINER LINES RECOMMEND FURTHER RATE INCREASE

(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.) 
ASIA-U.S. CONTAINER LINES RECOMMEND FURTHER FREIGHT RATE
INCREASE FOR SEPTEMBER 1 
Lines look to build on recent cargo volume gains to shore up
baseline rates for holiday peak period. 
Oakland, CA /August 18, 2014 - Member container shipping lines
in the Transpacific Stabilization Agreement (TSA) are proposing
an across-the board general rate increase (GRI) of at least
US$600 per 40-foot container (FEU) to all destinations,
effective September 1. Carriers had filed increases in their
individual tariffs in late July and subsequently began notifying
customers directly. 
TSA lines said the planned GRI follows strong cargo demand and
high vessel utilization levels in recent months, which forward
bookings suggest will continue through September. With
equipment, inland transport and other cargo handling costs
rising steadily, carriers see higher baseline rates going into
2015 as essential to maintaining adequate service levels over
time. 
“Lines have made modest revenue gains to date this year, but
they continue to struggle in terms of returning to
profitability,” said TSA executive administrator Brian Conrad.
“In most route segments they are operating at or near full
capacity with little room for error in managing assets, so this
increase is needed as a cushion to cover costs and assure
service choice and reliability.” 
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 is available online
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: n.erich@comcast.net 
(bjh) NY 
#<873920.660640.3.13.0.0.76>#
 
 
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