TSA ups rate to US$400/FEU from January as `imperative and overdue`

TRANSPACIFIC Stabilisation Agreement (TSA) has announced its member carriers plan to increase freight rates and charges by a minimum of US$400 per FEU from January 1.

"The recommended increases apply to all shipments moving under individual carrier tariffs, as well as service contract cargo in all commodity segments where volume commitments have been met and/or contract provisions permit," said the TSA statement.


TSA said it believed it is the right time "to reset steadily falling freight rate levels in the trade during the past quarter."


Said TSA administrator Brian Conrad: "Rate levels during 2011 have steadily eroded despite rising inland transport, cargo handling and other costs. Now, carriers are seeing stronger US holiday season cargo volumes on the heels of positive economic GDP and retail sales data, as well as robust forward bookings leading into the early Lunar New Year factory holidays in Asia. As carriers look toward building a platform for the 2012-13 contract cycle, the feeling is that a correction is both imperative and overdue."


Mr Conrad said these interim cost recovery and revenue restoration efforts are separate from TSA`s customary annual recommended revenue recovery programme in connection with May 2012 contracts, which will be finalised and announced before the end of 2011 or at the beginning of 2012.


TSA members include APL, China Shipping, CMA-CGM, Evergreen, Hanjin, Hapag-Lloyd, Hyundai Merchant Marine, "K" Line, MSC, NYK, OOCL, Yangming and Zim.