Tuesday, August 19, 2014
TSA members advise September rate increase on Asia-to-U.S. trades
Container shipping line members of the Transpacific Stabilization Agreement are recommending a general rate increase of at least $600 per-FEU on all Asia-to-U.S. trades, effective September 1.
TSA lines cited strong cargo demand and high vessel utilization levels to justify the proposed GRI, noting that forward bookings suggest the trend will continue through September. With equipment, inland transport and other cargo handling costs increasing, shipping lines say they regard higher baseline rates going into 2015 as key to maintaining service levels long-term.
"Lines have made modest revenue gains to date this year, but they continue to struggle in terms of returning to profitability," said TSA executive administrator Brian Conrad. "In most route segments they are operating at or near full capacity with little room for error in managing assets, so this increase is needed as a cushion to cover costs and assure service choice and reliability."
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