Monday, September 10, 2012

Westbound trans-Pac lines plan for $200 per-FEU dry cargo increase

The shipping lines that form the Westbound Transpacific Stabilization Agreement announced a recommended general rate increase for dry containerized cargo transiting from the U.S. to Asia that would be $200 per-forty-foot container and $160 per-twenty foot box as of Oct. 1.

The WTSA said in a statement that "westbound revenues have declined considerably from levels seen earlier in the year, as demand in Asia has slowed and carriers have made concessions in their pricing to accommodate customers during the difficult period."

The WTSA reported first quarter 2012 cargo volume of 800,000 FEUs vs. 774,200 FEUs for the same period in 2011 - a 3.5 percent increase year on year.

"More recently, carrier bookings indicate that those volume gains have since narrowed over the summer, and freight rates have followed," the WTSA said.

"The problem is that moving rates for many commodities have slipped to levels that no longer reflect the value of the service or make an adequate contribution to the round trip voyage," said WTSA Executive Administrator Brian M. Conrad.

"Carriers anticipate an upturn in the typically busy months ahead and feel a need to make up lost ground in terms of revenue," he said.

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