Westbound Transpacific Stabilisation Agreement hikes US-Asia rate

THE Oakland-based Westbound Transpacific Stabilisation Agreement (WTSA) has announced its recommendation that its 10 member lines levy a rate increase of US$240 per TEU and $300 per FEU on cargo from the US to Asia from April 1.

The WTSA carriers have "additionally proposed" a rate increase on reefer cargo from April 1 of $240 per TEU and $300 per FEU and for US west coast cargo and $400 per TEU and $500 per FEU and for all other cargo, including mini-landbridge, inland intermodal and all-water shipments from the US east and Gulf coasts.

"The move is part of an ongoing effort to restore rate levels after a sharp drop in the second half of 2009. US-Asia freight rates are currently at the same levels as in early 2008, said the WTSA statement.

Said WTSA administrator Brian Conrad: "Despite improvements, carriers lose money in both directions. This has put pressure on backhaul to make its contribution to roundtrip costs."

WTSA members include APL, Hyundai Merchant Marine, Cosco, "K" Line, Evergreen, NYK, Hanjin, OOCL, Hapag Lloyd and Yangming.

Source: www.schednet.com