Wednesday, July 11, 2012
Trans-Pacific carriers look to August rate increases for earnings boost
Container-shipping lines serving the Asia-U.S. eastbound trans-Pacific trade say they will "stay focused" as they look to the month of August for a collective earnings boost as announced freight rate increases are supposed to take effect.
Ocean carrier members of the Transpacific Stabilization Agreement recently announced dry cargo rate increases that range from an average of $500 per-forty-foot container to $700 per-FEU from Asia to the U.S. West Coast to mostly be implemented during the first week of August.
The TSA members have also announced recommended increases to refrigerated container rates that range from $1,000 per-FEU to $1,250 per-FEU for Asia-West Coast services that would take effect by August 15.
"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 U.S.-Asia return," the TSA said in a statement.
"Carriers across the entire trade are determined to maximize yield from ships they expect to approach full utilization throughout the summer months," said TSA executive administrator Brian M. Conrad.
"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," Conrad said.
The TSA members said they also want to "establish a more compensatory baseline for subsequent negotiation of 2013 longer-term contracts."
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