WTSA raises wastepaper rates again
Member container lines of the Westbound Transpacific Stabilization Agreement are recommending a second increase in wastepaper freight rates this year, of $50 per 40-foot container and $40 per 20-foot container, effective Sept. 1.
The proposed increase applies to both port-to-port and intermodal shipments, and follows an earlier increase taken last April.
'Sudden cargo growth in the U.S.-Asia market due to a weaker U.S. dollar has put pressure on carriers to make container equipment available across many commodity segments,' WTSA said in a statement. 'At the same time, a continuing cargo and equipment imbalance favoring inbound traffic requires shipping lines to optimize equipment allocation for faster turns and improved utilization. The result has been upward pressure on rates, especially as low-rated, high-volume traffic such as wastepaper competes with other cargoes for available equipment.'