Fifteen of the world’s largest container lines plan to seek rate hikes of US$400 per feu on eastbound transpacific trades to US west coast ports from next May.
Member shipping lines in the Transpacific Stabilisation Agreement (TSA) claimed the early end to this year’s peak season had left the trade “lagging, relative to other Asia container markets, while operating costs continue to rise”.
The TSA’s voluntary guideline contract recommendations for new contracts, most taking effect from 1 May, also call for a rate increase of $600/feu on all other destinations, full recovery costs of other equipment sizes and stricter collection of fuel charges as well as Panama Canal, Alameda Corridor and other fixed access charges.
The TSA also recommended a peak-season surcharge of $400/feu from 15 June through to 30 November 2011– “dates subject to adjustment based on changing market conditions”.
Despite sizeable profits recorded by most members in 2010, the TSA claim further revenue recovery is needed to restore liner financial stability.
The TSA’s Chairman, Hanjin Shipping CEO YM Kim, said:?“Carriers have experienced solid revenue growth across their networks in 2010, but two strong quarters in the transpacific – a highly competitive freight market with very thin margins – still do not fully offset two years of heavy losses.
“We said last year that we would not seek to recover all our losses in one year.”
The lines are predicting cargo growth of 6% to 9% from Asia to the US in 2011.
“Maintaining a stable infrastructure for the movement of goods is no less important today than in past years, and that will take sustained levels of carrier investment over time,” said Kim.
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