Cargo Business Newswire

Thursday, May 1, 2014

TSA member lines impose peak season surcharge and advise GRI for May 15

Container line members of the Transpacific Stabilization Agreement are recommending a GRI for mid May and a peak season surcharge in mid June, after experiencing an increase in eastbound bookings they expect to continue into the second half of 2014.

Vessel use is in the mid-90 percent range for trips to the West Coast and in the high-90 percent to full range to the East and Gulf Coasts, according to the TSA statement.

Consequently, TSA shipping lines say they will adopt a $400 per-FEU peak season surcharge for all shipments, effective June 15, 2014. Additionally, TSA carriers recommend a general rate increase of $300 per-FEU to the West Coast and $400 per-FEU to all other U.S. destinations, effective May 15.

"Carriers continue to play catch-up on rates, which have been effectively stagnant since 2011," said TSA executive administrator Brian Conrad. "Modest revenue gains from recent GRIs will not be adequate to pay for upgraded services to meet likely demand surges in the coming months."

TSA members include APL Ltd., China Shipping Container Lines, CMA-CGM, COSCO Container Lines, Evergreen Line, Hanging Shipping, Hag-Lloyd, Hyundai Merchant Marine, K Line, Maersk Line, Mediterranean Shipping Co., N.Y.K. Line, Orient Overseas Container Line, Yangming Marine Transport Corp, and Zim Integrated Shipping Services.