Shipping lines that carry U.S. exports to Asia, joining the global rush to raise ocean rates, said that they will seek to prop up freight pricing in the weak westbound Pacific market.
Shipping lines that carry U.S. exports to Asia, joining the global rush to raise ocean rates, said Thursday they will seek to prop up freight pricing in the weak westbound Pacific market. The Westbound Transpacific Stabilization Agreement, a discussion group of 10 carriers, announced voluntary guidelines for an increase of $150 per 40-foot container and $120 per 20-foot container for dry cargo moving from West Coast ports, effective Sept. 1. ?We"ve seen cargo demand fall off steadily from the highs of last year, pulling rates down with them, from already low levels,? said Brian Conrad, WTSA executive administrator. WTSA members are intent on stopping this rate erosion, Conrad said. Major carriers announced a series of rate actions in recent days on several major trade lanes, including price increases that would double rates on depressed trans-Atlantic lanes, as container lines began reporting huge financial losses amid steep declines in shipping volume. The WTSA also proposed an increase of $200 per FEU and $160 per TEU for intermodal shipments through West Coast ports or shipments moving via all-water services from the East and Gulf coasts to Asia.
The group also proposed an increase of $250 per FEU and $200 per TEU on refrigerated cargoes moving from the West Coast and $300 per FEU and $240 per TEU for intermodal and all-water shipments from the East and Gulf coasts.
The WTSA has no enforcement powers, so its announcements constitute voluntary guidelines agreed upon by its member lines.