TSA rate rise postponed to Dec 15

Transpacific carriers have delayed by two weeks the planned implementation of a December 1 general rate increase, Cargonews Asia reports.

The GRI is now to be imposed from December 15. In a statement, the Transpacific Stabilization Agreement (TSA) said: “The postponement reconciles varying effective dates adopted on a voluntary basis by individual carriers to avoid confusion in the market, and more closely aligns the scheduled increase with yearend cargo trends.”

Member carriers in the TSA are recommending a dry cargo general rate increase of US$400 per FEU to the US West Coast, and $600 per FEU for all other destinations.

TSA initially announced the GRI in October, explaining at the time that revenue improvement is critical amid flat or declining rate levels in many commodity segments.

“This is especially true as lines head into the winter season and begin laying a foundation for negotiation of compensatory 2013-14 service contracts that are essential to delivering sustained, quality services in the transpacific trade,” the TSA statement said.

Many of the world’s major carriers are represented by the TSA, including APL, K Line, China Shipping Container Lines , Maersk Line, CMA-CGM, MSC, Cosco Container Lines, N.Y.K. Line, Evergreen Line, OOCL, Hanjin, Yangming, Hapag-Lloyd, Zim and Hyundai .