WTSA to raise cotton freight rates
Westbound Transpacific Stabilization Agreement (WTSA) carriers plan to raise ocean and inland intermodal cotton freight rates following increasing demand from Asia, and in particular China.
WTSA carriers are recommending new minimum port-to-port rates via the U.S. West Coast, and a $150-per-40-foot container increase to intermodal add-on rates from all U.S. origin points, including western U.S. 'overland common point' (OCP) origins outside of California.
The WTSA said the raise is necessary to ensure the availability of trucks, chassis and container equipment, especially in the busy December-to-February period.
“Given a 2005-2006 U.S. crop forecast of 19-20 million bales and likely import demand of 12-15 million bales in China alone, transpacific carriers are looking ahead to a very busy season,” said Albert A. Pierce, the WTSA’s executive director.
“Reserving thousands of containers and chassis from carrier fleets, plus scheduling thousands of trucks for an average three-day trip to position equipment to rural locations, load and return to port, takes coordination and incurs a cost. Rates need to reflect the service provided,” he added.
WTSA members are: American President Lines, Kawasaki Kisen Kaisha, China Shipping, COSCO Container Lines, Nippon Yusen Kaisha, Evergreen Marine, Orient Overseas Container Line, Hanjin Shipping Co., P&O Nedlloyd, Hapag Lloyd, Yang Ming Marine and Hyundai Merchant Marine.