CTSA: 2nd round of rate hikes
Member lines in the Canada Transpacific Stabilization Agreement said Tuesday they will raise rates on March 15 for container shipments from Asia to Canada.
The rate hike is meant to increase revenue for carriers in advance of upcoming rate negotiations in spring and is $400 per FEU for Vancouver local and door cargo, and $500 per FEU for all intermodal and East Coast all-water shipments, with other equipment sizes rated per formula.
'Continued depressed rate levels in the Asia-Canada market have made it necessary for major container lines in the trade to implement a second general rate increase in advance of upcoming tariff and contract rate increases,' the CTSA said.
CTSA carriers have been aggressive in raising rates since the turn of the year, hiking rates by the same amounts on Jan. 15. This second round of increases surpasses that sought by carriers in the Transpacific Stabilization Agreement, which governs eastbound transpacific trade to the United States.
Both CTSA and TSA carriers advised member lines to charge an emergency revenue charge beginning Jan. 15. The TSA charge was $320 per 20-foot container, $400 per standard 40-foot container, $450 per high-cube 40-foot container, and $505 per 45-foot container. CTSA member lines are APL, COSCO Container Lines, Evergreen, Hapag-Lloyd, Hyundai Merchant Marine, 'K' Line, NYK Line, OOCL, Yang Ming and Zim Integrated Shipping Services, all of which are also TSA members.
Those increases came under attack from shippers in Asia, who said that small shippers would likely bear the brunt of the increases. They also said contracts were being devalued by effectively being renegotiated.
CTSA said the second round of increases, as with the first, are not meant to replace the previously announced May 1 increases of $800 per FEU for Vancouver local and door cargo, and $1,000 per FEU for intermodal and East Coast all-water moves, which will be applied to all long-term contracts going forward in 2010.
The new rates will apply to all CTSA origins, including Pakistan, Sri Lanka and Bangladesh.