Asia-U.S. container lines in the Transpacific Stabilization Agreement (TSA) are poised to levy a general rate increase (GRI) next month.
In a statement, TSA said that member-lines, anticipating strong pre-Lunar New Year shipments from Asia to the U.S., are proposing a US$600-per-40-foot-container rate increase for all origins and destinations, to take effect on February 9, 2015.
The increase is intended to ensure that carrier costs are adequately recovered coming out of the slower winter season, it added.
“This is a very challenging operating environment for transpacific container lines,” said TSA executive administrator Brian Conrad, “and it is critical to maintaining service levels that they not leave money on the table during the Lunar New Year period.”
Conrad emphasized that while some carriers have reported profitability in the trade in recent quarters, it has come almost entirely from cost-cutting as revenues have shown only marginal improvement over time.
TSA is a research and discussion forum of major container shipping lines serving the trade from Asia to ports and inland points in the U.S. These carriers include APL, China Shipping Container Lines, CMA-CGM, COSCO Container Lines, Evergreen Line, Hanjin Shipping Co., Hapag-Lloyd, Hyundai Merchant Marine, Kawasaki Kisen Kaisha, Maersk Line, Mediterranean Shipping Co., Nippon Yusen Kaisha, Orient Overseas Container Line, Yangming Marine Transport, and Zim Integrated Shipping Services.
Photo: US FDA
