WTSA LINES ADDRESS RATES FOR LOW-VALUED CARGO
Member lines of the Westbound Transpacific Stabilization Agreement have agreed to set base freight charges for two of the lowest-rated U.S. export cargoes to Asia — wastepaper and hay — while raising rates for metal scrap exports.
The discussion agreement will recommend minimum rates for wastepaper in December. Effective Jan. 1, recommended minimum rates for hay moving via the U.S. West Coast to Japan, Korea and Taiwan, and the minimums will be exclusive of destination delivery charges and documentation fees. Also effective Jan. 1, the WTSA will recommend member lines raise metal scrap rates by $100 per TEU and $200 per FEU.
Carriers said the downward trend in rate levels has placed them under pressure to ship wastepaper, hay, metal scrap and other, already low-rated cargoes at levels that make only a partial contribution to the cost of repositioning a container back to Asia to meet equipment demand there.
WTSA is a voluntary discussion and research forum of 13 major container shipping lines serving the trade from ports and inland points in the United States to destinations throughout Asia.
WTSA members include: American President Lines Ltd., COSCO Container Lines Ltd., Evergreen Marine Corp. (Taiwan) Ltd., Hanjin Shipping Co. Ltd., Hapag Lloyd Container Linie, Hyundai Merchant Marine Co. Ltd., Kawasaki Kisen Kaisha Ltd. (K Line), Maersk SeaLand, Mitsui O.S.K. Lines Ltd., P&O Nedlloyd Ltd./B.V., Nippon Yusen Kaisha (N.Y.K. Line), Orient Overseas Container Line Inc., Yangming Marine Transport Corp.