The 15 carrier-strong Transpacific Stabilization Agreement (TSA) aims to raise freight rates on the Asia-U.S. loop by $400 for every 40-foot container starting January 1, 2012 in an attempt to recover losses in 2011.
Freight rates have dove to loss-making levels this year due to overcapacity in the east-west trade and rising fuel costs.
The TSA said its members seek to individually raise freight rates and charges by at least $400 by January next year as it anticipates an increase in bookings ahead of the 2012 Chinese New Year observance.
“Rate levels during 2011 have steadily eroded despite rising inland transport, cargo handling and other costs,” TSA executive administrator Brian Conrad said in a statement. “Now, carriers are seeing stronger U.S. 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.”
Conrad clarified that the interim rate increases are apart from TSA’s annual recommended revenue recovery program to be announced late this year or early next year in connection with the 2012-2013 service contracts, most of which are to take effect on May 1, 2012.
The TSA counts the world’s biggest container shipping firms among its members. It is comprised of Maersk Line, NYK, COSCO, “K” Line, OOCL, MSC, CMA CGM, Hanjin Shipping, China Shipping, Nippon Yusen, Evergreen Group, Yang Ming, Hapag-Lloyd, Zim Integrated Shipping, and Hyundai Merchant Marine.
