TRANSATLANTIC CARRIERS WARN OF WESTBOUND PRICE HIKES
The shipping lines of the Trans-Atlantic Conference Agreement have warned shippers that they will introduce a “substantial” general rate increase in westbound freight rates effective Oct. 1.
“Despite the increases in TACA tariff levels introduced in the second quarter, the general level of rates is still significantly below that required to maintain service levels demanded by the trade,” the conference’s secretariat said on Monday.
The conference expects to provide details of the proposed rate increases in early August.
“That tariff increase can be expected to be substantial in nature,” the Trans-Atlantic Conference Agreement said in a statement.
As usual, the tariff increase will not apply to all shipments that move under service contracts, but it will be used by carriers in their contract renewal negotiations with shippers
Conference carriers experienced a near 10-percent increase in westbound volume through the first 20 weeks of this year, as compared to the same period in 2001.
“Vessel utilization is at a very high level and is expected to continue into the traditional heavy shipping period in the second half of this year,” the conference said.
The Trans-Atlantic Conference Agreement carriers are Atlantic Container Line, Hapag-Lloyd, Mediterranean Shipping Co., Maersk Sealand, NYK, OOCL and P&O Nedlloyd.