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Shipping lines members of the Westbound Transpacific Stabilization Agreement said they intend to increase Panama Canal charges for the first time in more than two years.
The carriers say the increase reflects annual increases in Panama Canal transit fees, as well as various premium charges and other related cost increases incurred over time.
Effective June 1, WTSA lines will individually raise their charges from $115 to $212 per container, regardless of container size.
For cargo rated on a weight or measurement basis, the charges will increase from either $6 per metric ton or $2 per cubic meter to either $11.50 per metric ton or $4.50 per cubic meter.
The agreement said the increases 'will bring charges into line with what is being charged by carriers in other trades shipping container freight via the canal today.'
WTSA noted that in 2005 the Panama Canal Authority adopted changes to the way canal transit fees are assessed, shifting to a per-container formula from one based on vessel weight, and then announced annual increases to the transit fee under the new formula, for 2005-2007.
WTSA lines modified the fee to reflect the new formula and initial increase, but have not adjusted the charge since then.
It noted that westbound U.S.-to-Asia carriers are doubly impacted by canal transit costs due to the high volume of empty containers being repositioned with no revenue to offset fees collected.
More recently, Panama's Cabinet Council approved a proposal to further transit fee increases of 10 percent annually over 2007-2009, including an increase in the fee formula for empty containers that went into effect on May 1.
Niels Erich, spokesman for the WTSA, said 50 percent or more of the containers that WTSA members move westbound through the canal are empties on a typical voyage. That's a reflection of the imbalance in U.S.-Asia trade where about 2.8 loaded containers enter the country for every container carrying exports.
WTSA is a voluntary discussion and research forum of 10 major container shipping lines: APL, Hyundai, COSCO, K Line, Evergreen, NYK, Hanjin, OOCL, Hapag Lloyd and Yang Ming.