Member lines of the Westbound Transpacific Stabilisation Agreement have warned shippers of rising bunker surcharges from October 1 resulting from the strict application of the calculation formula it adopted last year.
The Oakland-based WTSA has set increases of US$132 per FEU via the west coast and $258 per FEU via the east and Gulf coasts for dry cargo, and $186 per TEU and $342 per FEU for reefer cargo.
"It's important to keep in mind that the bunker charge addresses specific costs distinct from rates, and is not to offset movement in freight rates," said WTSA executive administrator Brian Conrad.
Increases reflect higher average bunker fuel prices during the 13-week calculation period of June through August, said the statement from the group.
"WTSA's bunker charge calculation 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. It then translates fuel price fluctuations into per container fuel-related costs for a typical transpacific west coast or east/Gulf coast sailing," said the group statement.
WTSA members are APL, Hyundai Merchant Marine, Coscon, "K" Line, Evergreen, NYK, Hanjin, OOCL, Hapag and Yangming.
The Oakland-based WTSA has set increases of US$132 per FEU via the west coast and $258 per FEU via the east and Gulf coasts for dry cargo, and $186 per TEU and $342 per FEU for reefer cargo.
"It's important to keep in mind that the bunker charge addresses specific costs distinct from rates, and is not to offset movement in freight rates," said WTSA executive administrator Brian Conrad.
Increases reflect higher average bunker fuel prices during the 13-week calculation period of June through August, said the statement from the group.
"WTSA's bunker charge calculation 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. It then translates fuel price fluctuations into per container fuel-related costs for a typical transpacific west coast or east/Gulf coast sailing," said the group statement.
WTSA members are APL, Hyundai Merchant Marine, Coscon, "K" Line, Evergreen, NYK, Hanjin, OOCL, Hapag and Yangming.