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U.S.-to-Asia carriers raise metal scrap rates

U.S.-to-Asia carriers raise metal scrap rates

   Shipping lines of the Westbound Transpacific Stabilization Agreement, a carrier group in the U.S.-to-Asia trade, have adopted a recommendation for an across-the-board general rate increase of $100 per 40-foot container and $80 per 20-foot container for U.S.-Asia shipments of metal scrap.

   The increase was formally adopted in early December and recently filed by individual lines to take effect Feb. 15, the carrier group said.

   The general rate increase will apply to carrier tariffs and to service contracts in which marine bunker fuel charges are broken out as a separate item and adjusted quarterly. For service contracts with fuel surcharges included in the basic rates, there will be higher increases on Feb. 15 set at $145 per 40-foot box and $116 per 20-foot container.

   The Westbound Transpacific Stabilization Agreement reported that Asian demand for metal scrap increased sharply during 2004, as industrial production soared and many sectors encountered shortages in steel and other metals.

   The carrier group said new Chinese regulations requiring shipper screening and certification rules, effective Jan. 1, have added compliance burdens on shipping lines.

   In a separate development, the U.S.-to-China carriers said they plan to reduce the “free time” allowed for importers to return their empty containers to 10 days in mainland China ports, but with a “temporary exception” for certain volume customers that would allow a free time of 12 days.