Container shipping lines in the Westbound Transpacific Stabilization Agreement (WTSA) have announced plans to raise freight rates for hay, and implement the second stage of a rate hike for dry agricultural products.
The rate hikes are part of a programme launched by WTSA members this year to recover revenue and costs associated with higher cargo handling, equipment and operating expenses in the transpacific market.
Starting July 1, hay rates will be increased by US$100 per FEU from California ports, and by $200/FEU from Pacific Northwest ports.
One month later, WTSA lines will increase agri-products rates by US$100 per FEU and $80 per TEU for inland point and minilandbridge intermodal shipments and by $50/FEU and $40/TEU for port-to-port cargo.
This is part of a two-stage increase in rates that was intended to "lessen the impact to customers", after agri-product rates were first raised this year in April, a statement issued on behalf of WTSA members said.
The agri-product rate hikes will apply to commodities such as soybeans, cotton by-products, grain products, peas beans and lentils. The higher freight rate will also be levied on non-seasonal cargoes including meal, flour, corn products, starches, animal feed (except pet food), seeds and food additives.
The WTSA is a discussion group of 10 major shipping lines that serve the trade between the US and Asia. Its members are APL, Cosco Container Lines, Evergreen Line, Hapag Lloyd, Hanjin Shipping, HMM, "K" Line, NYK Line, OOCL, and Yangming Marine Transport Corp.
The rate hikes are part of a programme launched by WTSA members this year to recover revenue and costs associated with higher cargo handling, equipment and operating expenses in the transpacific market.
Starting July 1, hay rates will be increased by US$100 per FEU from California ports, and by $200/FEU from Pacific Northwest ports.
One month later, WTSA lines will increase agri-products rates by US$100 per FEU and $80 per TEU for inland point and minilandbridge intermodal shipments and by $50/FEU and $40/TEU for port-to-port cargo.
This is part of a two-stage increase in rates that was intended to "lessen the impact to customers", after agri-product rates were first raised this year in April, a statement issued on behalf of WTSA members said.
The agri-product rate hikes will apply to commodities such as soybeans, cotton by-products, grain products, peas beans and lentils. The higher freight rate will also be levied on non-seasonal cargoes including meal, flour, corn products, starches, animal feed (except pet food), seeds and food additives.
The WTSA is a discussion group of 10 major shipping lines that serve the trade between the US and Asia. Its members are APL, Cosco Container Lines, Evergreen Line, Hapag Lloyd, Hanjin Shipping, HMM, "K" Line, NYK Line, OOCL, and Yangming Marine Transport Corp.