WTSA again seeks higher rates
Liner carrier members of the Westbound Transpacific Stabilization Agreement said Wednesday they are following up a rate increase in September with two new sets of recommended increases effective Dec. 1 and Jan. 15.
On Dec. 1, lines will seek to raise dry cargo rates $80 per TEU and $100 per FEU from the ports of Los Angeles and Long Beach and $120 per TEU and $150 per FEU from all other West Coast ports and all-water shipments from the U.S. East and Gulf coasts, as well as intermodal moves.
On Jan. 15, rates for reefer cargo will rise $200 per TEU and $250 per FEU for all U.S. West Coast shipments and $240 per TEU and $300 per FEU for intermodal and U.S. East and Gulf coasts all-water cargo.
The moves 'are part of a broad effort to restore rates to more compensatory levels that will help maintain service levels in the U.S./Asia trade,' the WTSA said.
'Transpacific carriers continue to see their fixed operating costs rise as freight rates decline in both directions,' said WTSA Executive Administrator Brian Conrad. 'The head-haul trade from Asia can't subsidize the outbound segment, credit remains tight and lines have already scaled back on vessels, port calls, routes and back office functions. The only way carriers can survive financially, meet rising U.S. export demand and maintain adequate service levels is through improved revenues.'
WTSA members are APL, COSCO Container Lines, Evergreen Line, Hanjin Shipping, Hapag-Lloyd, Hyundai Merchant Marine, 'K' Line, NYK Line, OOCL and Yang Ming.
Meanwhile, MOL, which is not part of the WTSA, said Thursday it is raising rates on dry cargo shipments from the United States to Asia by $120 per TEU, $150 per FEU or 40-foot high-cube container and $170 per 45-foot container. The increases apply to all cargo originating in the United States and destined for Asia.
'Our tight inventory, incremental repositioning and an increase of fuel costs among other factors requires us to take this action,' said Tsuyoshi Yoshida, MOL (America) executive vice president, who added that export demand remains high.