WTSA members hike forest product rates
Member shipping lines in the Westbound Transpacific Stabilization Agreement have adopted guideline rate increases of $100 per 40-foot container (FEU) and $80 per TEU for port-to-port forest products shipments. The rate increases for intermodal moves are $150 per FEU and $120 per TEU.
The new rates, which take effect Oct. 1, “are needed to help ensure equipment availability as the U.S. export market to Asia picks up and as demand for empty equipment intensifies in the Asia/Europe and intra-Asia markets, as well in the eastbound Asia-U.S. segment, given current imbalances,” WTSA said in statement.
In addition it noted “as more forest products migrate to containers from bulk rail movement, railroads continue to raise their container rates for those cargoes. Nearly 226,000 FEUs of U.S. forest products were shipped to Asia in 2006, including wood pulp, lumber and logs, kraft linerboard, paperboard, plywood, newsprint and paper products.”
WTSA carriers on Monday reported a second increase in wastepaper freight rates this year, of $50 per FEU and $40 per TEU, effective Sept. 1.
WTSA is a voluntary discussion and research forum of 10 major container shipping lines: APL, Hyundai, COSCO, 'K' Line, Evergreen, NYK Line, Hanjin, OOCL, Hapag Lloyd and Yang Ming.