WTSA raises scrap freight as rail, operating costs escalate
Member lines in the Westbound Transpacific Stabilization Agreement are recommending increases to metal scrap freight rates of $100 per FEU and $80 per TEU on port-to-port cargo and West Coast/East Coast local door moves to Asia, the liner conference said Monday.
WTSA is also recommending $150-per-FEU and $120-per-TEU hikes for inland point or mini-landbridge intermodal cargo. The effective date for the rate suggestions is Feb. 15.
'Despite continued strong industrial demand for recycled scrap in Asia, rates remain low to the point that some carriers in the trade have stopped soliciting scrap shipments to certain destinations — most notably in China — because current rates do not adequately cover transport, equipment and cargo handling costs,' WTSA said in a statement. 'This is particularly true for intermodal U.S. cargo, with westbound carriers anticipating rail rate increases of as much as 20 percent in 2007.'
