Oakland, CA / April 9, 2012 – Container shipping lines in the Westbound Transpacific Stabilization Agreement (WTSA) are recommending a further round of incremental rate increases to dry and selected refrigerated commodities, as part of a comprehensive rate restoration effort.
The adjustments, scheduled to take effect on May 15, 2012, will raise dry commodity rate levels by US$50 per 40-foot container (FEU) from Pacific Southwest ports (Los Angeles, Long Beach and Oakland), and by $100 per FEU for all other cargo, moving via all-water or intermodal service from Pacific Northwest ports, from inland U.S. points and from the U.S. East and Gulf Coasts. In addition, WTSA lines are recommending increases of $200 per FEU to refrigerated rates for French fries, frozen vegetables and miscellaneous refrigerated cargoes not covered under commodity-specific programs, for all origins and Asian destinations.
In a statement, WTSA executive administrator Brian M. Conrad emphasized that successive rate adjustments taken in recent months have been modest and aimed at incrementally restoring rates in the trade to compensatory levels after a period of significant erosion. He added that the diverse and often seasonal nature of westbound traffic makes it necessary to adopt multiple increases for cargo moving under contract throughout the year.
WTSA is a voluntary discussion and research forum of 10 major ocean and intermodal container shipping lines serving the trade from ports and inland points in the U.S. to destinations throughout Asia.
WTSA members include APL, COSCO Container Lines, Evergreen Line, Hanjin Shipping, Hapag Lloyd, Hyundai Merchant Marine, K Line, NYK Line, Orient Overseas Container Line, and Yang Ming Marine.
