Transpacific lines plan August rate hike
Transpacific container shipping lines have announced August freight rate increases on dry cargo and are considering rate rises also on refrigerated cargo as the market recovers, a group representing the industry said, reported Reuters.
Carriers serving the Asia-US trade have announced during the past week dry cargo rate increases averaging US$500 per 40-foot container (FEU) to the US West Coast and $700 per FEU for all other shipments, the Transpacific Stabilisation Agreement (TSA) said.
"The effective dates vary by carrier, but for the most part will be during the first week of August," Oakland, California-based TSA said.
The global shipping industry has been recovering this year from a more than three-year slump, which took many shipping companies into the red and some into bankruptcy.
Established in 1989, the TSA calls itself a research and discussion forum of major container shipping lines serving the trade from Asia to ports and inland points in the United States.
Its members include Denmark's Maersk Line, privately owned Switzerland-based Mediterranean Shipping Co (MSC), France's privately held CMA CGM, China's Cosco, Korea's Hanjin Shipping, Taiwan's Evergreen Marine and several others.
TSA member lines are recommending increases to refrigerated cargo rates of $1,000 per FEU to the US West Coast and $1,250 per FEU for all other destinations with effect from August 15, the TSA said.
"While refrigerated cargoes such as seafood represent a relatively small share of total cargo eastbound, they make an important contribution to the round-trip cost of managing expensive equipment that is in high demand on the US-Asia return," the TSA said.
Carriers are determined to maximise yield from ships they expect to approach full utilisation throughout the summer months, Brian Conrad, TSA executive administrator, said in the statement.
"Too much is at stake in 2012 for the lines, their investors, their creditors and their suppliers and vendors to leave money on the table after sustaining heavy losses in two of the last three years, and amid strengthening demand," he said.
The TSA in May recommended a peak-season surcharge and said Asia-US container shipping lines expected a strong summer in terms of cargo traffic.