The nearly 30-year old group, which once represented the major liner carriers that move nearly all container cargo between the Far East and the United States, will officially cease operating on Feb. 8, 2018.
The Transpacific Stabilization Agreement (TSA), a nearly 30-year old group that represented the major liner carriers in the transpacific trade, will officially cease operations Feb. 8, 2018, the association said in a statement Thursday.
One of the earliest carrier discussion agreements formed in the wake of the Shipping Act of 1984, TSA was formed in 1989 with the goal of discussing container carrier issues on the burgeoning Asia-U.S. trade lane.
“In addition to TSA’s commercial initiatives, the agreement has provided a forum for the lines to discuss trade conditions, market developments, and business and economic trends,” the TSA said.
As of early 2016, the group had 15 members – APL, China Shipping (CSCL), CMA CGM, COSCO, Evergreen, Hanjin, Hapag-Lloyd, Hyundai Merchant Marine (HMM), “K” Line, Maersk Line, MSC, NYK, OOCL, Yang Ming and ZIM – that collectively carried nearly all of the container cargo between the Far East and the United States. In recent years, however, the TSA has seen it’s membership dwindle, as industry consolidation removed Hanjin, CSCL, APL and would soon have removed OOCL as well, while others like Maersk, NYK, “K” Line and ZIM have left on their own accord.
“TSA has for many years served a valuable function to the carriers and other industry stakeholders,” Executive Administrator Brian Conrad said of the decision to shutter operations. “Liner shipping is a privately-financed infrastructure for Asia-U.S. trade. TSA has been a key element in helping to maintain and grow a wide range of carriers operating in the trade over the long-term, offering shippers the broadest, most reliable choice of service options possible. It has also been a strong advocate for carrier interests with both global regulators and the shipping public.
“The commercial and operational environment in the transpacific trade and, more broadly, in ocean transportation worldwide, has experienced significant changes in the past few years that are likely to continue through 2018 and beyond,” he added. “During these challenging times in shipping, it became apparent that the TSA’s original mission was no longer viable, but I believe that TSA has performed an important role over the years in supporting the development of U.S. international trade.”
Transpacific Stabilization Agreement shutters operations
