Pacific carriers want US$100/FEU more westbound from February 15

MEMBER shipping lines of the Westbound Transpacific Stabilisation Agreement (WTSA) have announced a February 15 rate increase for US-Asia of US$100 per FEU and $80 per TEU for dry cargo from Los Angeles and Long Beach, and $150 per FEU and $120 per TEU for dry cargo from other west coast ports, all-water shipments via the US east and Gulf coasts and inland point intermodal moves.
"Cargo demand continues to rise in the US-Asia freight market heading into 2010, but transpacific freight rates remain severely depressed in both directions and container lines find themselves under mounting pressure to improve revenues in order to meet customers` service requirements going forward," said the Oakland based quasi conference.
WTSA lines indicated that the February adjustments are part of a larger 2010 revenue programme, which is to include quarterly increases throughout the year as market conditions dictate.
"Carriers face a very difficult business environment in 2010," said WTSA executive administrator Brian Conrad. "Westbound cargo is going to have to make a greater proportionate contribution to overall sailing costs, if lines are to keep pace with cargo handling, equipment management, documentation and other operational requirements."
WTSA members include APL, Hyundai Merchant Marine, Cosco, "K" Line, Evergreen, NYK, Hanjin, OOCL, Hapag Lloyd and Yangming.