Members of the Westbound Transpacific Stabilisation Agreement (WTSA) will levy rate increases on dry and reefer cargo from the US to all destinations in Asia from December 1 and again on January 15.
From December 1, a rate increase of US$80 per TEU and US$100 per FEU will be levied on cargo from Los Angeles and Long Beach and another rate hike of $120 per TEU and $150 per FEU applied on cargo from other American ports including those US west coast outside LA-Long Beach. This will also be charged to all-water shipments from the US east and Gulf coast ports as well as on intermodal moves.
The change follows increases from last September, and is part of a "broad effort to restore rates to more compensatory levels that will help maintain service levels in the US-Asia trade," said the WTSA statement.
On January 15, WTSA lines also plan to levy reefer increases of $200 per TEU and $250 per FEU on ex-US west coast shipments and $240 per TEU and $300 per FEU for intermodal and US east coast and Gulf all-water cargo.
"Transpacific carriers continue to see their fixed operating costs rise as freight rates decline in both directions," said WTSA executive administrator Brian Conrad.
"The headhaul trade from Asia can't subsidise the outbound segment. Credit remains tight and lines have already scaled back on vessels, port calls, routes and back office functions. The only way carriers can survive financially, and meet rising US export demand and maintain adequate service levels is through improved revenues," he said.
WTSA members include APL, Hyundai Merchant Marine, Coscon, "K" Line, Evergreen, NYK, Hanjin, OOCL, Hapag Lloyd and Yangming.
From December 1, a rate increase of US$80 per TEU and US$100 per FEU will be levied on cargo from Los Angeles and Long Beach and another rate hike of $120 per TEU and $150 per FEU applied on cargo from other American ports including those US west coast outside LA-Long Beach. This will also be charged to all-water shipments from the US east and Gulf coast ports as well as on intermodal moves.
The change follows increases from last September, and is part of a "broad effort to restore rates to more compensatory levels that will help maintain service levels in the US-Asia trade," said the WTSA statement.
On January 15, WTSA lines also plan to levy reefer increases of $200 per TEU and $250 per FEU on ex-US west coast shipments and $240 per TEU and $300 per FEU for intermodal and US east coast and Gulf all-water cargo.
"Transpacific carriers continue to see their fixed operating costs rise as freight rates decline in both directions," said WTSA executive administrator Brian Conrad.
"The headhaul trade from Asia can't subsidise the outbound segment. Credit remains tight and lines have already scaled back on vessels, port calls, routes and back office functions. The only way carriers can survive financially, and meet rising US export demand and maintain adequate service levels is through improved revenues," he said.
WTSA members include APL, Hyundai Merchant Marine, Coscon, "K" Line, Evergreen, NYK, Hanjin, OOCL, Hapag Lloyd and Yangming.