WTSA to hike rates for Asia-bound wastepaper
Ocean shipping container lines in the Westbound Transpacific Stabilisation Agreement (WTSA) will be raising rates for waste paper carried on the US-Asia trade route in stages this year.
Starting from May 1, an initial increase of US$100 per FEU will be imposed on wastepaper rates for inland point and coast-to-coast mini-landbridge intermodal shipments.
A separate rate hike will be imposed at a price and date and not yet determined, though it will not take place until after May 1, for all-water, port-to-port shipments, a WTSA statement said.
The WTSA also plans to increase intermodal rates by a further $100 per FEU from September 1.
WTSA members say that they are being forced to raise freight rates for waste paper shipments on this trade owing to higher inland transport, cargo handling and maintenance costs having driven up operational expenses. These factors combined with the trade imbalance are making cost recovery difficult, particularly on the return leg of the journey. The carriers point to a near 3:1 imbalance of cargo and equipment inbound to the US versus outbound to Asia.
"Carriers are under growing pressure to reposition containers quickly with Asian manufacturers, as well as recover full operating costs over the round trip sailing. This in turn has placed sustained upward pressures on wastepaper rates," the statement said.
WTSA members are: APL, Hyundai Merchant Marine, Cosco Container Lines, "K" Line, Evergreen Marine Corp., NYK, Hanjin Shipping, OOCL, Hapag Lloyd Container Lines, and Yangming Marine Transport Corp.
Starting from May 1, an initial increase of US$100 per FEU will be imposed on wastepaper rates for inland point and coast-to-coast mini-landbridge intermodal shipments.
A separate rate hike will be imposed at a price and date and not yet determined, though it will not take place until after May 1, for all-water, port-to-port shipments, a WTSA statement said.
The WTSA also plans to increase intermodal rates by a further $100 per FEU from September 1.
WTSA members say that they are being forced to raise freight rates for waste paper shipments on this trade owing to higher inland transport, cargo handling and maintenance costs having driven up operational expenses. These factors combined with the trade imbalance are making cost recovery difficult, particularly on the return leg of the journey. The carriers point to a near 3:1 imbalance of cargo and equipment inbound to the US versus outbound to Asia.
"Carriers are under growing pressure to reposition containers quickly with Asian manufacturers, as well as recover full operating costs over the round trip sailing. This in turn has placed sustained upward pressures on wastepaper rates," the statement said.
WTSA members are: APL, Hyundai Merchant Marine, Cosco Container Lines, "K" Line, Evergreen Marine Corp., NYK, Hanjin Shipping, OOCL, Hapag Lloyd Container Lines, and Yangming Marine Transport Corp.