Shipping lines that carry U.S. exports to Asia will increase their bunker fuel surcharges on Oct. 1 according to a formula the members of the Westbound Transpacific Stabilization Agreement adopted last year.
The WTSA Monday published voluntary guidelines calling for an increase of $132 per 40-foot container on shipments from West Coast ports and $258 per-FEU from East and Gulf Coast ports for dry cargo.
The guideline for refrigerated cargo is an increase of $186 per-FEU from the West Coast and $342 per-FEU from East and Gulf Coast ports.
Bunker fuel surcharges are based on the previous 13-week period. The new surcharges reflect the price of bunker fuel from June through August. The WTSA formula tracks average bunker fuel loading prices at Hong Kong and Los Angeles for the West Coast and Hong Kong and New York for the East and Gulf coasts.
While recognizing the price-sensitive nature of U.S. exports to Asia, especially agricultural exports, WTSA Executive Administrator Brian M. Conrad said bunker fuel surcharges address a specific cost in carriers' operations.
"It is distinct from rates, follows a set formula and is not intended to be either increased or mitigated to offset movement in freight rates," Conrad said.
He noted that in the period June through August, bunker fuel prices to the West Coast increased to $446 per metric ton from $386. Bunker prices to the East and Gulf coasts increased to $452.50 from $387, he said.
WTSA is a discussion agreement of 10 carriers in the westbound Pacific trade. Its guidelines are voluntary and the WTSA has no enforcement powers.
The WTSA Monday published voluntary guidelines calling for an increase of $132 per 40-foot container on shipments from West Coast ports and $258 per-FEU from East and Gulf Coast ports for dry cargo.
The guideline for refrigerated cargo is an increase of $186 per-FEU from the West Coast and $342 per-FEU from East and Gulf Coast ports.
Bunker fuel surcharges are based on the previous 13-week period. The new surcharges reflect the price of bunker fuel from June through August. The WTSA formula tracks average bunker fuel loading prices at Hong Kong and Los Angeles for the West Coast and Hong Kong and New York for the East and Gulf coasts.
While recognizing the price-sensitive nature of U.S. exports to Asia, especially agricultural exports, WTSA Executive Administrator Brian M. Conrad said bunker fuel surcharges address a specific cost in carriers' operations.
"It is distinct from rates, follows a set formula and is not intended to be either increased or mitigated to offset movement in freight rates," Conrad said.
He noted that in the period June through August, bunker fuel prices to the West Coast increased to $446 per metric ton from $386. Bunker prices to the East and Gulf coasts increased to $452.50 from $387, he said.
WTSA is a discussion agreement of 10 carriers in the westbound Pacific trade. Its guidelines are voluntary and the WTSA has no enforcement powers.