Container lines in the Asia-U.S. freight market are resisting cyclical winter season pressures on rates, reaffirming their resolve to prevent discounting that spills over into 2013-14 contracts.
Member lines in the Transpacific Stabilization Agreement (TSA) are recommending an increase in dry cargo rates, effective January 15, 2013, of US$600 per 40-foot container (FEU) on shipments to U.S. West Coast ports and inland coastal state destinations, and $800 per FEU to all other destinations. The increase coincides with a previously announced TSA increase for refrigerated shipments.
“This is a make or break period for transpacific carriers,” said TSA executive administrator Brian M. Conrad. “They cannot afford another year in which expiring contracts and seasonally weak demand erode rate levels, which are then extended for 12 months in the next year’s contracts. Lines see breaking this cycle as key to their viability going forward.”
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. Members include APL Ltd, CMA-CGM, China Shipping Container Lines, COSCO Container Lines, Ltd., Evergreen Line, Hanjin Shipping Co., Ltd, Hapag-Lloyd AG, Hyundai Merchant Marine Co., Ltd., Kawasaki Kisen Kaisha, Ltd. (K Line), Maersk Line, Mediterranean Shipping Co, Nippon Yusen Kaisha (N.Y.K. Line), Orient Overseas Container Line, Ltd., Yangming Marine Transport Corp and Zim Integrated Shipping Services.
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